I just noticed an interesting pattern in Bitcoin. The funding rate has dropped to -6%, marking the second low in three months. Usually, at such moments, what is called a short squeeze begins — when traders with short positions are forced to close due to rising prices, creating a wave of buying. It turns out that shorts paid too much for their positions and are now prepared to incur losses.

Currently, open interest in BTC has increased to 687,000 contracts per day, even though the price has fluctuated. This indicates that more participants are entering the market despite the volatility. Over the past 24 hours, positions worth over 500 million have been liquidated, with 420 million of that coming from longs. Bitcoin fell below 64,000 but is now trying to recover above that level.

When the funding rate is so negative, it usually means there are too many shorts and they are overconfident. History shows: on February 6, there was a similar funding level, and a rebound also occurred then. If Bitcoin consolidates above 64,000, a wave of short position closures could begin. The current price around 73,000 already indicates a recovery. I will keep an eye on how the situation develops further.