$BTC The bulls are currently holding on while the bears are sharpening their knives.

Currently, the bulls' dominant position in closing trades has reached 97%, and almost all liquidations are from the bulls.

This indicates that market sentiment has become extremely distorted. Although such extreme values usually foreshadow a possible short-term rebound (because the selling pressure is intense), without subsequent funds to take over, this stabilization is merely a dead fish jumping.

Moreover, after a normal drop, the funding rate should turn negative (bears pay bulls). The funding rate is still positive now.

In my view, this suggests that the bulls in the market are not giving up; they are crazily rebuilding their long positions at an extremely high cost. Since the position structure is still tilted towards the bulls, any rebound is just a wave of escape.

Remember that saying—only when the bulls stop being bullish will the market truly be able to rise. The current funding rate indicates that the bulls have not been subdued; the market might still go through a more severe drop to force the funding rate to zero.