The real market does not show on the candles.
The market appears within the centers, within the positioning, within the biases.
Funding is the fastest way to read this sentiment without noise.
High positive funding simply means:
Longs congestion, excessive optimism, and bets based on sentiment rather than data.
If the price is stable despite the congestion, it means that market makers are allowing the accumulation of positions that can be liquidated later.
The clear negative funding reflects:
Crowded Shorts, pricing for fear, and an attempt to predict a fall that does not happen.
If the price does not drop, it indicates that the decline is funded by Retail and is being absorbed by a stronger party.
The value of funding doubles when linked with Open Interest:
Positive Funding + Increased OI + Stable Price:
Crowded Longs… Unsustainable movement… Usually ends with a rapid downward pressure.
Negative Funding + Increased OI + Stable Price:
Crowded Shorts… Hidden strength in the background… Environment ready for a sudden reversal.
Funding is essentially a psychological reading:
High Funding = Long FOMO
Low Funding = Short Panic
Neutral Funding = Position transfer phase before a big movement
Three cases that occur repeatedly:
1. Rise + Positive Funding + High OI
Retail-funded rally. Unreliable.
2. Drop + Negative Funding + High OI
Packing Shorts before Up movement.
3. Sideways + Sudden change in funding
Entry of a huge player or exit of an institutional position.
Operational Summary:
Do not follow the price… follow the positioning.
Funding tells you what the public wants, and OI tells you the level of risk, and the market usually goes to the
The one that filters the largest number of centers with the least effort.
