1/7 HOW TO USE FUNDING RATE TO PREDICT BITCOIN PRICE? https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Fire" aria-label="Emoji: Fire">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rocket" aria-label="Emoji: Rocket">
Funding rate is one of the best indicators to determine herd sentiment of the market. While this thread won& #39;t explain what exactly is futures funding rate but we will learn how to use funding rate to analyze where $BTC

2/7 we are in the market cycle.
BTC market cycle broadly contains 3 phases- Accumulation, Euphoria & Distribution. Note that Distribution is the longest cycle in BTC case & Euphoria is the shortest $BTC #Bitcoin https://abs.twimg.com/hashflags... draggable="false" alt=""> #BTC https://abs.twimg.com/hashflags... draggable="false" alt=""> #SP500

3/7 Accumulation phase starts with a huge volume capitulation. Lots of buyers chicken out and sell at shitty prices. This involves high spot volumes & highly negative funding rate. Once this happens, the funding stays negative for quite a long time $BTC #BTC https://abs.twimg.com/hashflags... draggable="false" alt=""> #Bitcoin https://abs.twimg.com/hashflags... draggable="false" alt=""> #XBT #Crypto

4/7 Accumulation to Euphoria transition is characterized by slowly reducing absolute value of negative funding rates. Funding starts turning positive & stays +ve for long time. During dips funding turns negative but for a very short time. WE ARE CURRENTLY AT THIS STAGE $BTC #BTC https://abs.twimg.com/hashflags... draggable="false" alt="">

5/7 I believe we are slowly transitioning into the Euphoria phase. We need to watch out 2 things: 1) Funding must stay positive for quite some time, 2) During the dips, funding must be only slightly -ve not highly -ve. $BTC #Bitcoin https://abs.twimg.com/hashflags... draggable="false" alt=""> #BTC https://abs.twimg.com/hashflags... draggable="false" alt=""> #XBT #cryptocurrency

6/7 These are actually the best times to LONG. Why? Because the dips are bought up quickly & price doesn& #39;t stay down for long time. So BTFD with proper Liquidation price management needs to be the mantra right now. Stay tuned to my updates for more info $BTC #Bitcoin https://abs.twimg.com/hashflags... draggable="false" alt=""> #BTC https://abs.twimg.com/hashflags... draggable="false" alt=""> #XBT

7/7 In my future updates, I& #39;ll share where exactly I think Euphoria stage will kick in and the market will rally like crazy. Also I will share how to analyze this market using Bitcoin on-chain metrics. Stay tuned! $BTC #Bitcoin https://abs.twimg.com/hashflags... draggable="false" alt=""> #BTC https://abs.twimg.com/hashflags... draggable="false" alt="">