$BTC NEGATIVE FUNDING FLASHING: Is the Short Squeeze Setup Brewing? 🚨
Funding just printed around -0.006 — meaning shorts are actively paying longs while Bitcoin hovers near $68K. That’s not neutral positioning. That’s conviction.
When funding stays negative for days, it signals traders are leaning heavily bearish in perpetual futures. They’re paying a premium to bet on downside. And historically? Crowded trades don’t unwind gently.
We already flushed toward $60K and bounced, yet funding remained negative. That tells you derivatives desks still aren’t buying the rebound. But here’s the twist — extended negative funding during sideways consolidation has often appeared during bottoming phases, not breakdown accelerations.
Macro isn’t collapsing. Liquidity hasn’t evaporated. Price is well off highs. Positioning is defensive.
That’s the kind of setup where upside moves inflict maximum pain.
Does it mean instant reversal? No. Bases take time. But when shorts are paying and price stops cascading lower — you watch closely.
Liquidity shifts → crowded trades unwind → BTC reprices fast.
Patience > panic.
