$Bull Is Coming sentiment index 18 (extreme fear), funding rate -0.047% (shorts are crowded). It plunged 27% in 24 hours, from 0.0637 to 0.0432, with a trading volume of 27.1M—this is the token I just cut losses on yesterday.

I went long at 0.058 the day before yesterday, based on a breakout above the previous high and trend continuation. But I bought the candle at peak euphoria, when the funding rate was +0.06% and everyone online was calling for a 2x. Yesterday, I stopped out when it broke below 0.052, taking an 11% loss. Today it’s at 0.046, and I’m glad I didn’t hold—but honestly, seeing that -27% figure makes my fingers itch again.

Three lessons from reviewing the trade: First, a negative funding rate alongside accelerating price declines signals extreme bearish sentiment, not a bottom-buying opportunity. Wait for the rate to turn positive before acting. Second, the 24-hour low of 0.0432 was driven by panic selling. A needle-like low like this only counts as support if it holds for three days. Third, trading volume of 27M shows liquidity is still there—it’s not dead yet—but don’t rush to catch a falling knife.

Current sentiment indicators: Fear and Greed at 18, near historical extremes (the last time it fell below 20 was three months ago, followed by a 34% rebound over the next two weeks). Shorts are paying a -0.047% funding rate, a classic breeding ground for a short squeeze. But the price is still in a downtrend. My advice: don’t chase shorts or buy the dip. Wait for two days of low-volume sideways trading in the 0.0432–0.0450 range, and for the rate to turn positive above 0.01%, then try a small long position. Keep the position under 5%, set a stop-loss at 0.0410, and take profit at the first target of 0.056. Exit without hesitation if it breaks below 0.0432.

I only trade sentiment reversals; I don’t try to guess the bottom. Last time, I chased the price when the funding rate was +0.06% and got burned. I’ve learned my lesson this time—I’ll wait until the shorts are panicking too. Follow me; I’ll post a live trade the next time the funding rate turns positive.

Sentiment reversal = best entry #每周来晒 #Gate广场中秋团圆局