Recently, an interesting phenomenon has been observed on the blockchain. The market is in an extremely negative funding rate environment, but although the shorts continue to pay high funding costs, they haven't been able to push the price further down—this is the classic squeeze and fuel cycle.

From on-chain data, the recent dip indeed cleared out many long leverage positions, but interestingly, spot buying quickly absorbed this selling pressure. Open interest remains active, but there hasn't been any excessive inflation or crazy piling up.

This creates a contradictory situation: the bearish sentiment seems crowded, but the actual control is quite weak. Once the buying momentum from longs re-strengthens, a relatively quick rebound is likely to be triggered.

Of course, caution is also needed regarding the risk of a liquidity trap, as there is a real possibility of black swan events in the current environment. But from a purely technical perspective, the short-term outlook still favors the bulls. The performance of BTC and ETH is worth continuous observation, especially when breaking through some key levels.