$BTC Funding Rates Turn Negative Again But Is a Short Squeeze Coming? đĽ
$BTC hourly funding rates on Binance have flipped negative once more signaling that short positions are starting to dominate the futures market. Under normal conditions negative funding reflects increasing bearish expectations as traders anticipate further downside and are willing to pay to keep their short positions open.
However the market has already seen this exact setup play out recently. Just yesterday funding turned sharply negative and instead of breaking lower BTC jumped from $89K to $92K, triggering a wave of short liquidations. This sudden surge caught over leveraged shorts off guard and forced them to close positions at higher prices.
Now weâre seeing the same pattern building again.
Shorts are piling up funding is negative and sentiment is becoming one sided. When the market leans too heavily in one direction it often becomes vulnerable to a short squeeze especially if liquidity is thin or buyers step in aggressively.
If BTC attracts even moderate spot demand or if a large order sweeps the book bearish traders could once again be forced to exit potentially creating rapid upward pressure in the short term.
While negative funding typically signals weakness in crowded conditions like this it may actually be a precursor to volatile upside movement rather than a breakdown.
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