Gate Research Institute: ETH fluctuates weakly, RSI strategy gains 210% profit against the trend.

Introduction

This quantitative biweekly report (from June 10 to June 23, 2025) focuses on the market performance of Bitcoin and Ethereum, systematically analyzing key indicators such as long-short ratios, contract open interest, and funding rates to provide a quantitative interpretation of the overall market. This issue's quantitative strategy module highlights the practical application of the "RSI Trend Reversal Strategy" among the top ten projects by market capitalization in the cryptocurrency space (excluding stablecoins), systematically elaborating on its strategic logic, signal determination mechanism, and execution process. Through parameter optimization and historical backtesting, the strategy demonstrates good stability and execution discipline in trend identification and risk control. Compared to simply holding BTC and ETH, this strategy performs better in terms of enhancing returns and controlling drawdowns, offering a practical quantitative trading reference framework.

Summary

• In the past two weeks, BTC has oscillated between 100,000 and 110,000 USDT, with a relatively stable trend. However, the long-short ratio continues to hover between 0.9 and 1.1, and the overall direction remains unclear. ETH, on the other hand, has seen a significant pullback, lacking momentum, and market sentiment is relatively weak.
• The BTC contract position amount has dropped to a new low in nearly a month, indicating that long leveraged funds are actively reducing their positions, and the market lacks incremental support; ETH positions have also declined simultaneously, trading activity has decreased, and short-term enthusiasm has significantly weakened.
• The funding rates for BTC and ETH are oscillating within the range of ±0.01%, with balanced long and short forces, failing to provide clear momentum. Investors generally maintain a wait-and-see attitude, waiting for trend confirmation.
• Geopolitical tensions have sparked risk-averse sentiment, but the market structure has not improved. The amount of long liquidations continues to exceed that of shorts, indicating that although there is strong enthusiasm for chasing prices, there is a lack of actual trend support.
• The quantitative analysis focuses on the "RSI trend reversal strategy," achieving a cumulative return of over 210% in the SUI token through an oversold rebound mechanism, demonstrating good short-term trading potential.

Market Overview

In order to systematically present the funding behavior and trading structure changes in the current cryptocurrency market, this report approaches from five key dimensions: the price volatility of Bitcoin and Ethereum, long-short ratio (LSR), contract open interest, funding rates, and market liquidation data. These five indicators encompass price trends, funding sentiment, and risk conditions, and can comprehensively reflect the current market's trading intensity and structural characteristics. The following will analyze the latest changes in each indicator since June 10:

1. Analysis of Price Volatility of Bitcoin and Ethereum

According to CoinGecko data, BTC overall maintains a fluctuation range between 100,000 and 110,000 USDT, exhibiting relatively stable performance with mild price fluctuations, demonstrating strong resistance to declines; whereas ETH has repeatedly attempted to surge past 2,600 USDT without success, showing insufficient momentum and weak performance in chasing higher prices. Especially entering late June, ETH and BTC declined simultaneously, with ETH breaking below 2,300 USDT, reaching a new low in recent months, indicating that market funds lack confidence in its short-term performance.

From a structural perspective, although the BTC price has experienced short-term adjustments, it remains above key support levels and has not shown signs of a trend breakdown. Funds still lean towards medium to long-term layouts; ETH, on the other hand, is constrained by weak technical factors and slowing trading volume, with MACD momentum recovery being slow, intensifying short-term volatility. ETH is more susceptible to market fluctuations compared to BTC, and the attitude of funds is more cautious and conservative. [1][2][3]

On the policy front, the United States passed the GENIUS Act stablecoin bill on June 17, establishing a federal regulatory framework for the stablecoin market; meanwhile, the new SEC chairman has successively repealed several crypto regulatory proposals put forth by the previous administration, indicating a trend of easing in the overall regulatory environment. Although the policy atmosphere is relatively favorable, the market has not been able to strongly rebound as a result, reflecting that current funds are more focused on geopolitical and macro variables.

In terms of geopolitical issues, news of Iran's intention to block the Strait of Hormuz has triggered a surge in global risk-averse sentiment, with markets concerned that escalating tensions in the Middle East could drive up energy prices and trigger a rebound in inflation. BTC briefly fell below 100,000 USDT, while ETH dropped below 2,200 USDT, reflecting the market's revaluation of the liquidity and risk of crypto assets amid rising macroeconomic uncertainty, exposing the issue of the short-term risk-hedging properties of crypto assets. This news occurred on June 23, but was affected by the delay in publication and market reaction. Subsequently, U.S. President Trump announced a ceasefire between Iran and Israel, causing risk-averse sentiment to quickly cool, leading to a general rebound in mainstream coins like BTC.

Overall, BTC has shown stronger resilience in a fluctuating structure, receiving relatively more funding support; while ETH is under dual pressure from technical weaknesses and news disturbances, resulting in a weaker trend. Moving forward, it is recommended to focus on whether the Federal Reserve's subsequent comments on inflation and employment continue to lean hawkish, as well as the market response after the federal funds rate has been maintained at a high level for an extended period. At the same time, the dynamics of fund inflows into Bitcoin spot ETFs, as well as whether the Ethereum Layer 2 ecosystem can reignite market enthusiasm, remain key factors in observing the repair of risk appetite and market rebound.

Figure 1: BTC fluctuates between 100,000 and 110,000 USDT, showing a relatively stable trend; ETH has a larger pullback, lacking momentum and showing weak sentiment.

In terms of volatility, the volatility of ETH is generally higher than that of BTC, especially during quick rebounds and pullback points in the market, where ETH's fluctuations are significantly amplified, indicating that it is more susceptible to short-term capital and sentiment drives. During this period, ETH experienced several sudden fluctuations, reflecting the intense short-term speculation in the market and frequent inflows and outflows of funds.

In contrast, the volatility distribution of BTC is more stable. Although it has also increased, both the magnitude and frequency are lower than those of ETH, indicating that its price structure is more resilient and more favored by medium to long-term capital. Overall, the current market lacks sustained mainline themes, with BTC maintaining low volatility characteristics, reflecting a relatively stable allocation of main capital, while ETH, lacking a clear trend, is more susceptible to amplifying short-term market fluctuations.

Figure 2: The volatility of ETH is significantly higher than that of BTC, indicating that its price is more susceptible to short-term capital movements and emotional influences.

The overall cryptocurrency market has been in a weak oscillating pattern over the past two weeks, with BTC showing strong resilience and structural stability, maintaining operations within a key support range and attracting more medium- to long-term funds. In contrast, ETH has shown relative pressure under weak technical indicators and emotional disturbances, repeatedly failing to reach new highs and breaking below its recent low, indicating a clear lack of market confidence. In terms of volatility, ETH is significantly higher than BTC, reacting more sensitively in the short term and easily influenced by emotional and capital disturbances, reflecting a cautious attitude toward risk assets in the market due to the absence of a clear trend. On the policy front, the passage of the "GENIUS Act" and the easing of SEC regulations provide some positive support, but the escalating geopolitical situation and ongoing uncertainty due to high interest rates still suppress overall market risk appetite. Overall, BTC demonstrates stronger resilience within the current structure, and attention should still be paid to changes in liquidity and the degree to which policy clarification can restore market expectations.

2. Analysis of Long-Short Ratio (LSR) for Bitcoin and Ethereum Trading Volume

Long/Short Taker Size Ratio (LSR) is a key indicator that measures the trading volume of long and short orders in the market, typically used to assess market sentiment and trend strength. When LSR is greater than 1, it indicates that the volume of active buying (taking long positions) is greater than that of active selling (taking short positions), suggesting that the market is more inclined to go long, with sentiment leaning bullish.

According to Coinglass data, the long-short ratio (LSR) of BTC and ETH shows a fluctuating trend overall, without forming a stable resonance with price movements, reflecting a lack of consensus expectations in the market regarding the current situation, with neutral funding sentiment and some hedging behavior. Although BTC briefly rebounded after dropping below 102,000 USDT, the LSR fluctuated more violently, indicating that short sellers are taking profits or short-term bulls are tentatively entering. However, the overall ratio remains oscillating between 0.9 to 1.1, with an unclear trend direction and a dominant sentiment of market participants waiting on the sidelines.

The ETH trend is weaker compared to BTC, dropping below 2,300 USDT on June 22. The LSR also experienced significant fluctuations, often approaching 0.9, reflecting insufficient upward momentum and that short selling pressure has not been effectively released. Even when prices rebounded, the LSR failed to stabilize above 1, indicating a lack of bullish confidence, with market operations tending more towards short-term defense.

Overall, although BTC and ETH have shown partial rebounds, the LSR indicator has not strengthened in tandem. The market still leans towards tentative layouts and defensive allocations, lacking a clear trend consensus. If the LSR can stabilize above 1.05 and coincide with a price increase supported by volume, there is hope for the market to transition into a more sustained upward cycle.

Figure 3: The BTC price rebounded shortly after falling below 102,000 USDT, but the long-short ratio remained oscillating in the range of 0.9 to 1.1, indicating a lack of clear direction in the overall trend.

Figure 4: ETH LSR has approached 0.9 multiple times, reflecting insufficient upward momentum and that bearish pressure has not been effectively released.

3. Contract Position Amount Analysis

According to Coinglass data, over the past two weeks, the contract positions of BTC and ETH have shown a synchronized downward trend, indicating that funds are gradually withdrawing from leveraged trading in response to a weakening market, with a clear decline in risk appetite. The contract position amount for BTC has continuously fallen from a peak of about 76.9 billion USD in mid-June to about 67 billion USD, reaching a new low in nearly a month. This trend reflects that after the price dipped and fell below 102,000 USDT, some long leveraged funds actively reduced their positions, and the market lacks incremental capital support, resulting in an overall decline in trading enthusiasm.

The fluctuation in the amount of ETH holdings is greater. After reaching a high of nearly 41.4 billion USD on June 10, it quickly fell back to around 28 billion USD, a decline of over 30%. This change is highly related to the price trend of ETH itself. After several unsuccessful attempts to rise and falling below 2,300 USDT, the long position funds in contracts have significantly retreated, and the risk appetite for leveraged funds has notably contracted.

Overall, the BTC and ETH contract markets are cooling down simultaneously, with a noticeable phenomenon of capital outflow, reflecting the market's cautious attitude towards short-term trends. Unless there is a trend reversal or macro positive factors driving it, it will be difficult to return to a high-leverage active state in the short term. Attention should still be paid to signals of price stabilization and position stability.

Figure 5: The BTC contract position amount has dropped to a new low in nearly a month, indicating that some long leveraged funds have actively reduced their positions, and the market lacks incremental capital support, with overall trading enthusiasm significantly declining.

4. Funding Rate

In the past two weeks, the funding rates for BTC and ETH have remained low and fluctuated without a significant bias towards longs or shorts, reflecting a neutral market sentiment and a balanced capital game structure. The funding rate for BTC has oscillated within a range of ±0.01%, with frequent alternation between positive and negative values, indicating a relatively balanced force between longs and shorts in the market. Although BTC prices have seen a short-term rebound, the overall positioning capital has not significantly leaned towards one direction, suggesting that bulls have not actively increased their positions, and the market lacks clear trend signals.

The funding rate performance of ETH is similar to that of BTC, fluctuating between slightly positive and slightly negative overall. It even turned negative multiple times around June 20, reflecting that during the price weakening process, bears held a relative advantage, but the long-short difference is not significant, and funding is still mainly focused on short-term hedging and low-leverage trading.

Overall, the current funding rate fluctuates limitedly, and has not yet provided clear directional momentum for BTC or ETH. Investors generally maintain a wait-and-see attitude, waiting for clearer trend signals. If the funding rate can continue to turn positive and rise steadily in the future, it could be considered a confirmation signal for bullish investors to actively enter the market; conversely, if it turns negative for a long time, caution is needed for further bearish market conditions.

Figure 6: BTC and ETH funding rates remain in a low oscillation, with market sentiment being neutral and slightly watchful.

5. Cryptocurrency Contract Liquidation Chart

According to Coinglass data, the amount of long liquidations in the past two weeks has been significantly higher than that of short liquidations, dominating most trading days. As the market's rebound weakens, funds attempting to go long at high levels frequently encounter market reversals, leading to concentrated liquidations of long leveraged positions. Especially during periods of price pressure and decline, the amount of long liquidations has repeatedly surged, with daily liquidation scale breaking 500 million dollars multiple times, reflecting a strong chasing sentiment in the market, but lacking sustainable trend support. [8]

In contrast, the scale of short position liquidations is generally smaller and more scattered, reflecting a relatively cautious short positioning and a more rational rhythm of capital inflow and outflow. Overall, the current liquidation structure presents typical characteristics of "chasing highs and enticing more buying, followed by forced liquidation," with market trading behavior primarily centered around short-term speculation, a more aggressive capital style, and severe emotional fluctuations. Against this backdrop, the risks of leveraged trading have significantly increased, and investors should place greater emphasis on position management and volatility control to avoid blindly increasing positions in unclear trends.

The current stage shows a clear structure of "strong bulls and weak bears", indicating that while there is still some optimistic expectation in the market, there is a lack of confidence in the continuation of trends, leading to frequent entries by bulls that easily trigger liquidations. The market is highly volatile and the rhythm is erratic, so it is advisable for investors to reduce leverage and be cautious in chasing highs during short-term operations, and to wait for a clear trend before positioning.

Overall, the current funding rate is sluggish, LSR is experiencing horizontal fluctuations, and the contract holding amount continues to decline. These three key indicators collectively suggest that the market is still in a wait-and-see and adjustment phase. In the short term, if no trend signals or macro favorable factors emerge, the overall rebound momentum may still be limited. Going forward, attention should be focused on whether LSR can stabilize above 1.05. If it can be accompanied by a simultaneous rebound in holdings and funding rates, it may support the market in transitioning to a more sustainable upward structure.

Figure 7: The scale of long position liquidation continues to be higher than that of shorts, indicating strong market enthusiasm for chasing prices but lacking trend support.

In the past two weeks, the cryptocurrency market has shown a generally downward trend. Although Bitcoin's performance has been relatively stable, Ethereum has clearly come under pressure, with its price structure and volatility reflecting a lack of confidence from market funds in the short-term situation. Core indicators such as long-short trading ratios, contract positions, funding rates, and liquidation structures indicate that market sentiment is generally neutral or even slightly conservative, with a weakened willingness for leverage participation. Short-term speculation and defensive operations dominate the market rhythm. Despite some positive signals from policies, such as the promotion of stablecoin regulatory legislation and a more lenient regulatory stance, geopolitical tensions and macroeconomic uncertainties still suppress risk appetite. If prices can effectively stabilize at key support levels in the future, along with a synchronized rebound of the LSR indicator, contract positions, and funding rates, the market is expected to break free from the current repeated fluctuation pattern and restart a trending market. During this stage, investors should maintain a wait-and-see and cautious attitude, patiently waiting for clear trend signals to emerge.

In the context of a weak market structure and fluctuating sentiment, accurately grasping trend judgments and trading timing is particularly crucial. Therefore, the following content will focus on the RSI (Relative Strength Index) in technical quantitative indicators, exploring its practical effectiveness in capturing short-term reversal opportunities. We will center on the "RSI Trend Reversal Strategy," backtesting its performance in the recent volatile market, and evaluating the strategy's adaptability and stability across different cryptocurrencies and volatility ranges.

Quantitative Analysis - RSI Trend Reversal Strategy

(Disclaimer: All predictions in this article are based on historical data and market trend analyses, for reference only, and should not be considered as investment advice or guarantees of future market movements. Investors should fully consider risks and make cautious decisions when making related investments.)

1. Strategy Overview

The RSI trend reversal strategy is a short-term trading strategy based on the Relative Strength Index (RSI) to assess market sentiment and capture price reversal opportunities. This strategy sets the RSI oversold threshold as an entry signal and the overbought threshold as an exit criterion to identify the corrective momentum of the market under extreme emotions, focusing on operating long positions (going long). When the price enters the oversold zone, a buy is executed, and positions are closed when profit-taking, stop-loss, or RSI overbought conditions are reached. The strategy combines dynamic profit-taking and stop-loss mechanisms, helping to profit from trend rebounds or control risk in case of misjudgment, suitable for seeking short-term trading opportunities in oscillating and reversal-prone market conditions.

This backtest takes the top ten cryptocurrency projects by market capitalization (excluding stablecoins) as the subject, covering mainstream public chains and high liquidity assets. It tests the adaptability and practicality of the strategy under different currencies and market phases, verifying its feasibility and robustness in real trading deployments.

2. Core Parameter Settings

3. Strategy Logic and Operational Mechanism

Entry Conditions

• In a no-position state, if RSI is below rsi_oversold, the market is considered to be in an oversold state, triggering a buy signal.

Entry Conditions:

• Overbought Condition: If RSI is higher than rsi_overbought, it is believed that the market may reverse, triggering a closing signal.
• Stop Loss: If the price falls back to the buying price * (1 - stop_loss_percent), it triggers a forced stop loss.
• Take Profit Closing: If the price rises to the buying price * (1 + take_profit_percent), trigger the take profit closing.

Practical Example Chart

• Trading signal triggered The chart below shows the SUI/USDT 1-hour K-line chart when the strategy triggered entry on June 15, 2025. After a continuous decline, the RSI fell below the oversold area near 20 in the early morning of that day and quickly rebounded above 40, indicating short-term reversal signs. At the same time, the MACD fast line began to approach the slow line, suggesting that momentum is recovering, and there are also signs of volume increasing. Although the price has not significantly moved away from the bottom, the rebound of the RSI from the oversold level combined with low volume support meets the strategy's "buy on dips" condition, thus triggering a buy signal to position for the subsequent rebound.

Figure 8: SUI/USDT Strategy Entry Position Diagram (June 15, 2025)

• Trading actions and results After rebounding the previous day, the SUI price continued to oscillate upwards. The RSI once broke through 75, entering the overbought zone, but then momentum weakened and the RSI fell back. The strategy triggered a closing operation based on overbought conditions to lock in profits from the earlier rise. Although the price continued to rise slightly after exiting, the MACD curve indicates that momentum is slowing down and the histogram is contracting, showing a decrease in short-term bullish momentum. At the same time, the short-term moving averages are beginning to converge, forming a typical "high momentum reduction" structure. This exit aligns with the risk control logic of "taking profits when the upward trend is overheated," effectively avoiding potential subsequent pullback pressure. In the future, if dynamic profit-taking or trend-following mechanisms can be combined, it is expected to further enhance overall profit-taking efficiency and profit margins.

Figure 9: SUI/USDT Strategy Exit Position Diagram (June 16, 2025)

Through the above practical examples, we intuitively demonstrate the entry and exit logic and dynamic risk control mechanism of the RSI strategy during extreme fluctuations in market sentiment. The strategy is based on the RSI indicator to identify the timing of oversold rebounds and overbought weakening. It selectively enters the market after the RSI falls below a specific threshold to capture rebound momentum; when the RSI rises to the overbought area or the price reaches the take profit/stop loss conditions, it exits in a timely manner, thereby maximizing profits and controlling risks during short-term reversals.

Based on limited drawdown, this strategy successfully locked in stage gains, demonstrating its ability to capture reversals and maintain trading discipline in a volatile environment. This case not only verifies the executability and defensive efficiency of the RSI strategy in live market conditions but also provides an empirical basis for subsequent parameter optimization, combining multi-factor indicators, or extending to other trading varieties.

4. Practical Application Examples

Parameter Backtesting Settings

To find the best parameter combination, we conduct a systematic grid search over the following ranges:

• rsi_overbought: 60 to 95 (step size of 5)
• rsi_oversold: 5 to 30 (step size of 5)
• stop_loss_percent: 1% to 2% (step size of 0.5%)
• take_profit_percent: 10% to 16% (step size of 5%)

Taking the top ten projects by cryptocurrency market capitalization (excluding stablecoins) as an example, this article backtested the 1-hour K-line data from May 2024 to June 2025, testing a total of 288 parameter combinations and selecting the ten combinations with the best annualized return. The evaluation criteria include annualized return, Sharpe ratio, maximum drawdown, and ROMAD (return to maximum drawdown ratio), to comprehensively assess the strategy's stability and risk-adjusted performance in different market environments.

Figure 10: Comparison Table of Performance for Five Optimal Strategies

Strategy Logic Description When the program detects that the RSI indicator falls below the preset oversold threshold, it is considered that the price has entered an extreme low emotional area, and the strategy will immediately trigger a buy operation. This logic aims to capture entry opportunities at the early stage of market short-term reversals, using RSI to determine potential moments for the return of buying momentum, and combined with dynamic take-profit and stop-loss mechanisms to strengthen risk control. If the subsequent RSI rises to the overbought zone, or the price reaches the set take-profit or stop-loss range, the system will automatically execute an exit operation, promptly locking in profits or avoiding further losses.

Taking SUI as an example, the settings used in this strategy are as follows:

• rsi_oversold= 20 (oversold threshold, triggers buy when below this value)
• rsi_overbought = 70 (overbought threshold, exceeding this value triggers a position close)
• stop_loss_percent = 1%
• take_profit_percent = 15%

This logic combines trend breakout signals with fixed ratio risk control rules, suitable for trading environments with clear market direction and well-defined wave structures. It effectively controls drawdowns while following trends, enhancing trading stability and overall profit quality.

Performance and Results Analysis The backtesting period is from May 2024 to June 2025, and the strategy applies the RSI overbought and oversold logic to the top ten cryptocurrency projects by market capitalization (excluding stablecoins). The overall cumulative return performance is robust, significantly outperforming the spot Buy and Hold strategies of BTC and ETH. As can be seen in the chart, the strategy return curves of SUI, XRP, and DOGE continue to rise, with cumulative increases exceeding 200%. The strategy has successfully captured short-term reversal trends multiple times, demonstrating good entry timing and trading discipline.

In contrast, the spot holding strategies for BTC and ETH exhibit volatility, with ETH experiencing a maximum drawdown of over 50%. The RSI strategy effectively controls risk during periods of consolidation and correction, avoiding downward phases while gradually accumulating profits. This strategy model demonstrates good adaptability and generalization ability across different cryptocurrencies, capable of handling unclear trend environments and also steadily increasing value during repeated fluctuations.

Overall, the current RSI strategy has achieved a good balance between returns, risk control, and stability, demonstrating potential for further practical deployment and multi-currency expansion. In the future, it may be worth considering the integration of volume changes or volatility dynamic factors to optimize entry quality and exit timing, further enhancing the overall trading efficiency of the strategy across different market cycles.

Figure 11: Comparison of the cumulative return rates over the past year between five optimal parameter strategies and BTC, ETH holding strategies.

5. Summary of Trading Strategies

The RSI trend reversal strategy uses the RSI indicator as the core logic for entry and exit points, combined with dynamic profit-taking and stop-loss mechanisms, demonstrating good risk control capabilities and stable yield performance across various mainstream crypto assets. During backtesting, the strategy accurately captured short-term market reversal opportunities multiple times, especially performing excellently in volatile and fluctuating market conditions, with overall performance significantly better than traditional Buy and Hold strategies.

From the results of multi-currency backtesting, the strategy combinations of projects such as SUI, XRP, and DOGE have all achieved impressive results, with the highest cumulative return exceeding 210%. At the same time, they effectively avoided the deep drawdown risks faced when holding spot assets like ETH, further verifying the adaptability and robustness of the RSI strategy in live trading.

It is worth noting that although the win rate of most cryptocurrencies under this strategy is below 50%, with a reasonable risk-reward structure and strict risk control mechanisms, it is still possible to achieve positive cumulative returns even with a lower win rate. This demonstrates the high effectiveness of the strategy in profit and loss control as well as position management.

Overall, the RSI strategy achieves a good balance in controlling drawdowns, enhancing return efficiency, and improving capital utilization, making it particularly suitable for deployment in high volatility and high uncertainty market environments. In the future, it can be further optimized by integrating Bollinger Bands, volume filtering factors, or volatility screening mechanisms to improve the quality of entry and exit signals, and extend to multi-period and multi-asset quantitative trading frameworks to continuously enhance the stability and scalability of the strategy system.

Summary

From June 10 to June 23, 2025, the cryptocurrency market showed a weak oscillating pattern, with prices fluctuating. BTC demonstrated a certain level of support resilience, while ETH faced significant pressure, repeatedly attempting to rise but failing and creating a low point for the period, indicating a lack of market confidence. In terms of volatility, ETH was significantly higher than BTC, reflecting its greater susceptibility to short-term sentiment and capital disturbances, making it more speculative. The long-short trading ratio (LSR) remained oscillating between 0.9 and 1.1, lacking a trend consensus, with capital operations leaning towards defense and hedging. Meanwhile, the contract holding amount continued to decline, indicating that leveraged funds were actively reducing positions, and risk preference was converging; the funding rate remained low and oscillated without a clear long or short bias, further confirming the market sentiment's neutrality. In terms of liquidation structure, long liquidations were significantly higher than short liquidations, presenting a typical pattern of "failed long chasing and concentrated liquidation," indicating that while the market showed optimistic attempts, it lacked sustained support, resulting in violent fluctuations and a lack of direction. Overall, the current market, without a main driving force and favorable macroeconomic context, remains in a stage dominated by short-term speculation. Investors should control leverage, avoid chasing high prices, and closely monitor changes in capital structure, position dynamics, and key support levels in anticipation of the market producing more sustained trend signals.

In a market lacking a directional trend and with emotional fluctuations, reversal-type quantitative strategies have medium to short-term trading advantages. This quantitative analysis focuses on the "RSI Trend Reversal Strategy", evaluating its practicality and stability in different market environments. The strategy captures low position rebounds by setting an RSI oversold threshold and combines it with a mechanism for taking profits at overbought levels or a fixed proportion for stop-loss to control risks. Backtesting results show that the strategy performs excellently among mainstream cryptocurrencies such as SUI, XRP, and DOGE, with the highest cumulative returns exceeding 210%, and overall drawdown well controlled. Although the win rate for most cryptocurrencies is below 50%, the strategy still achieves long-term positive returns through clear exit logic and a high win-loss ratio, demonstrating good fund management and trading discipline.

Overall, this strategy demonstrates a good balance between return performance, robustness, and execution efficiency, possessing certain potential for real-world application. In actual operations, the strategy's performance may still be affected by factors such as market fluctuations, extreme conditions, or signal failures, and its stability and adaptability will face further validation in different market environments. In the future, if combined with other quantitative factors and risk control mechanisms, its expanded performance under multi-period and multi-currency frameworks may be observed.
Reference Material:

1. CoinGecko, https://www.coingecko.com/
2. Gate, https://www.gate.com/trade/BTC_USDT
3. Gate, https://www.gate.com/trade/ETH_USDT
4. Coinglass, https://www.coinglass.com/LongShortRatio
5. Coinglass, https://www.coinglass.com/BitcoinOpenInterest?utm_source=chatgpt.com
6. Gate, https://www.gate.com/futures_market_info/BTC_USD/capital_rate_history
7. Gate, https://www.gate.com/futures/introduction/funding-rate-history?from=USDT-M\u0026contract=ETH_USDT
8. Coinglass, https://www.coinglass.com/pro/futures/Liquidations

Disclaimer Investing in the cryptocurrency market involves high risks. It is recommended that users conduct independent research and fully understand the nature of the assets and products being purchased before making any investment decisions. Gate does not take responsibility for any losses or damages resulting from such investment decisions.