🚨 $BTC Funding Turns Negative – Is a Short Squeeze Coming?
Bitcoin funding rate just dropped to around -0.006, which means short traders are paying longs while BTC trades near $68K. That’s not a balanced market — that shows strong bearish positioning.
When funding stays negative for several days, it usually means many traders are betting on further downside in perpetual futures. They are paying extra fees to hold short positions. And history shows that when too many traders lean one way, the market can move sharply in the opposite direction.
BTC already dipped near $60K and bounced back, but funding is still negative. This suggests that many derivatives traders don’t fully trust the recovery yet.
Here’s the interesting part — long periods of negative funding during sideways price action have often appeared near market bottoms, not during major breakdowns.
Right now: • Macro conditions are stable
• Liquidity is still in the market
• Price is below previous highs
• Positioning is cautious
This kind of setup can lead to strong upside moves if shorts start closing positions.
Does this guarantee an immediate reversal? No. Building a base takes time. But when shorts are paying fees and price stops falling aggressively — it’s something to monitor closely.
If positioning flips, BTC can move fast.
Stay patient, not emotional.
