Indecision is the thief of opportunity.
The above is a popular quote and is applicable to financial markets as well. When a market is indecisive, such as now, it leads people to question their judgement which in turn leads to “trading the chop” where the most probable outcome tends to be capital reduction. This is why, in periods of indecision, one must form an opinion that has clear invalidations to ensure they don’t get caught up in the mistakes led by indecision.
Welcome to Weekly Technicals Pro where we analyse various crypto assets on the weekly timeframe to depict the most probable outcomes over the mid-term.
Disclaimer: Not financial nor investment advice. Any capital-related decisions you make are your full responsibility and only you are accountable for the results.
The current sentiment reflects the indecision seen by price at it sits at “neutral” levels.
To sum up, a very high funding rate means euphoria is in the market and calls for caution. The best way to gauge the current situation is to look at where price is, the vision for where crypto is going (each person has their own thesis) and then whether the momentum is sustainable or not. In this case here, leverage is not a limiting factor since euphoria is not to be found at this moment in time when it comes to BTC.