Negative Bitcoin funding rate may signal pending short-squeeze above $70K

💡 DMK Insight

Bitcoin’s current price of $64,826 is holding steady, but the negative funding rate and flatlining open interest signal potential volatility ahead. A negative funding rate often indicates that short positions are dominating the market, which can lead to a short squeeze if bullish sentiment picks up. Traders should keep an eye on the $70,000 level, as a push above this could trigger a wave of buying, especially if the funding rate shifts back to positive. The flat open interest suggests that traders are waiting for a clearer signal before committing further capital, which could mean that any sudden movement—either up or down—could be amplified. However, it’s worth noting that the current market sentiment is mixed. While some traders might see this as a setup for a breakout, others may be cautious given the negative funding rate. Watch for any changes in open interest or funding rates in the coming days, as these will be key indicators of market direction.