
In most cases, observing BTC’s swing trends can be simplified by analyzing momentum compression (which can be further combined with funding scarcity): 1️⃣ Momentum compression helps assess the relative strength of bullish and bearish forces over the medium term, observing how the three phases of a swing (top/formation - acceleration - bottom/formation) evolve; 2️⃣ Funding scarcity reveals whether the market is overly speculative—excessive speculation often indicates excessive positioning in one direction, increasing the likelihood of a trend reversal. Hope this helps!
