We’ve witnessed this $BTC setup play out repeatedly in the past 👀
Let’s break it down in a straightforward way.
When funding rates begin to ease and then suddenly drop, it sends a clear signal:
the market was overloaded with long positions, and a cleanup phase begins where those longs get flushed out.
If you study previous cycles on the chart 👆, the pattern is consistent.
Every time funding rates reached extreme levels, a price correction followed soon after.
This is simply how leverage is washed out of the system.
So where do we stand now?
• Significant liquidity is sitting above current price levels
• Japan is moving closer to an interest rate increase
• Higher rates mean global liquidity tightens
And when liquidity dries up, markets usually react with downside pressure.
This isn’t about manipulation — it’s basic market mechanics.
If Japan proceeds with an interest rate hike on December 19, Bitcoin could experience a sharp pullback, mirroring the historical pattern shown in the chart 📉
What’s the smart approach right now?
• If you’re exposed to high-risk positions, proceed cautiously
• If you’re sitting on profits, taking some off the table is reasonable
• If you’re already down, avoid emotional selling — these drops are typically temporary
Once the leverage reset is complete, the market often stabilizes and rebounds.
My broader outlook: $BTC may remain under pressure through the Christmas period 🎄
From early January, conditions could improve, with a potential recovery phase lasting into mid-January.
Stay disciplined.
Manage risk wisely.
Let price action unfold naturally.
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