🚨 $BTC
Negative Funding Flashing — Short Squeeze Setup Brewing?
Funding around -0.006 has been printed — this means shorts are actively paying longs while Bitcoin is trading around ~$68K.
This is not a neutral positioning.
This is conviction.
When funding remains negative for several days, it simply means that perpetual futures traders are heavily leaning bearish. They are paying a premium to bet on the downside.
And what does history say?
Crowded trades rarely unwind gently.
We have seen a flush near $60K — and there was a bounce from there.
But funding still remained negative.
This indicates that derivatives desks do not trust the rebound.
⚠️ But here’s the twist:
Extended negative funding during sideways consolidation has historically often been seen in bottoming phases — not in breakdown accelerations.
Not in macro collapse mode.
Liquidity has not vanished.
Price is quite below highs.
Positioning is defensive.
And this is the type of environment where:
➡️ Upside moves create maximum pain
➡️ Shorts get squeezed
➡️ BTC reprices quickly
Does this mean an instant reversal?
No.
Bases take time.
But when shorts are paying…
And the price stops cascading…
Then the market should be watched closely.
Liquidity shifts → Crowded trades unwind → Volatility expansion → Fast repricing.
Stay sharp. 👀