Everyone is entangled in BTC's performance at the 88000 USDT threshold, but I have noticed two more dangerous market signals that have been overlooked. These two signals could directly determine the direction of the market in the future and are worth a serious look by every trader.

**Financing rates are climbing - the leverage trap is taking shape**

In the past week, I noticed the data from mainstream trading platforms, the BTC perpetual contract funding rate jumped from 0.01% to 0.03%. This increase may not seem significant, but it reflects a continuous rise in long leverage.

Some may see this as a bullish signal, with bulls increasing their positions indicating optimism. The problem is — when market liquidity is insufficient, high leverage becomes a bomb that can explode at any moment. Do you remember the crash that dropped below 86000 USDT? It was the same pattern. The overwhelming leverage from bullish positions encountered sudden sell orders, instantly triggering a chain of liquidations. During that time, nearly 190,000 people were liquidated within 24 hours, with the liquidation amount soaring to 270 million USD. The current situation is strikingly similar to that time — weak liquidity combined with high leverage configuration means that as soon as there is a slight market disturbance, another wave of liquidations could occur.

My advice is straightforward: avoid high leverage in the near term, especially for beginners. I suggest you put off contracts for now and focus on spot trading to accumulate experience, which is more reliable.

**Subtle Changes in Institutional Capital**

The second signal is more subtle. Recently, institutional funds have shown clear signs of short-term profit-taking... (to be continued)