I noticed an interesting movement in Bitcoin — the funding rate has dropped to a three-month low. When this happens, it usually indicates that shorts have over-leveraged their positions and the market may be preparing for a correction in their direction.

It is precisely under such conditions that a potential squeeze can form. If longs start entering more actively and shorts begin closing in a panic, this could lead to a quite sharp rise. I've seen such scenarios before — when the funding rate drops so low, it often precedes a squeeze.

Right now, the market is kind of on the edge. On one hand, the low funding rate creates conditions for a squeeze; on the other hand, we need to look at volumes and the behavior of major players. But the fact that the rate has fallen to a three-month minimum clearly indicates that shorts have over-leveraged. If a squeeze occurs, shorts will rush to close their positions, which will only amplify the upward movement. It's worth keeping an eye on this situation.