A clear turning point has emerged in recent days as we monitor changes in funding rates.

What was the previous situation? There was a surge of extremely bearish sentiment, with many forces using full leverage to short, causing funding rates to spike to ridiculous levels, and almost daily profits were being made. But now, looking at the data, the funding rates on mainstream platforms are quietly returning to neutral levels. This shift may seem calm on the surface, but the signals behind it are very clear — the previous frenzy of bearish forces has subsided.

Combining the on-chain data I’ve been tracking recently, whale addresses have been steadily building positions over the past few weeks. The BTC balances on exchanges haven't increased significantly; in fact, there are signs of slight outflows. What does this indicate? It suggests that big players have no intention of dumping, and may even be taking the opportunity to accumulate at lower prices. From this perspective, the panic selling phase in the market is essentially over.

But it must be emphasized — this is a turning point, not a reversal.

The bottom zones for BTC and ETH are becoming clearer, but there’s still a distance to fully stabilize. The next phase will involve sideways consolidation, not an immediate V-shaped rebound to the sky. Why? Because too many positions are trapped above, and the bulls need time to gather strength. They will need to go through repeated oscillations to digest this pressure. The key is not to blindly remain bearish; at this stage, the focus should be on whether BTC and ETH can hold their critical support levels.

As for altcoins, now is really not the time. The data shows that the funding rates for altcoins are still negative, indicating that the overall market sentiment remains bearish. During this period, liquidity is flowing back into core assets — namely BTC and ETH, the "ballast stones."

Why is this happening? When the market is unstable, the primary goal of capital is capital preservation. Large funds will prioritize assets with the best liquidity and relatively controllable risk, which is why mainstream coins are attracting inflows. Altcoins have fallen too deeply in the past, and restoring confidence takes time. More importantly, many projects’ fundamentals can’t support their current prices. Jumping in at this critical point? That’s likely to be a trap.

What’s the outlook for the next phase? My assessment is as follows —

**Mainstream coins**: BTC and ETH will enter a consolidation phase, with bottoms becoming more defined, but the rebound potential will be limited. Bulls are accumulating strength, and the frenzy among bears has passed. This is a relatively balanced tug-of-war. Patient holders will wait for the moment when the bottom is truly established — that will be the real opportunity.

**Altcoin prospects**: Continued divergence is highly probable. Some coins with strong backing or sudden positive news may run ahead temporarily, but the overall sector’s big move has not yet arrived. When will the real altcoin season come? Only when BTC stabilizes completely and capital slowly flows out into altcoins. The most important thing now is patience.

This market is not lacking in opportunities; what’s missing is the discipline to wait.