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

💡 DMK Insight

Bitcoin’s current price of $63,188 is holding steady, but the negative funding rate signals potential volatility ahead. A flatlining open interest suggests traders are hesitant, which could lead to a short squeeze if momentum shifts. If BTC can break through resistance around $65,000, we might see a rush back toward $70,000. But keep an eye on the funding rates; they can indicate market sentiment. A sustained negative funding rate often means more shorts are piling in, which can create a pressure cooker for a squeeze. On the flip side, if BTC fails to maintain its range and drops below $60,000, we could see panic selling, especially from retail traders. Watch for volume spikes that could signal a shift in sentiment. The next few days will be crucial for determining whether we’re gearing up for a breakout or a breakdown.