Bitcoin Shorts Reach Most Extreme Level Since 2024 Bottom

$BTC is trading at $69,815, attempting a breakout toward $70,000 after weeks of choppy consolidation, sitting just below the $70,610 resistance level. Aggregated funding rate data indicates an extreme surge in short positioning, with negative levels matching those in August 2024 that preceded a reversal. The NUPL indicator has entered the hope/fear zone near 0.18, signaling thin profit cushions among holders. Technical indicators like Chaikin Money Flow and MACD suggest potential improving momentum, though on-chain and derivatives signals remain mixed.

Key takeaway: Heavy bearish positioning in derivatives and emerging technical signals indicate a fragile market structure