This is the always hope of traders to get to know about the market trend so that they can execute their trades. to be honest this is the hardest thing to know about the market trend.
Once you get to know about the trend line then there is no difficulty for the trades. If you get to know that market is bullish then every of your trade will be in favor of you and if the market is bearish then it will help you to take the short positions.
If you want to know the market trend, a good way is to look at Bitcoin/USDT futures and the funding fee. Funding fee is a small amount that traders pay or receive to keep the price close to the spot market.
When the funding fee is negative, it means many people have taken short positions because they have hope that market will fall from this position and that mostly not happens. Often, when many people short, demand increases and price starts to go up. This means the trend can be upside.
If the funding fee is positive, it means many people have taken long positions. When many people are long, supply increases and price can go down. This means the trend can be downside.
In this way, funding fee gives you a small but powerful sign of where the market may go. This way is very useful especially for big coins like Bitcoin, where futures trading is high and also the liquidity is too much high.
What do you people think about this technique? Will it help you to know about the market trend? Will be glad to see your answers in the comment section.
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