Negative Bitcoin funding rate may signal pending short-squeeze above $70K
Bitcoin holds its range trend even as the funding rate turns negative and BTC open interest flatlines. Is the data leaning toward a short-squeeze back to $70,000?
Bitcoin (BTC) slid to a weekly low of $64,111 during the New York trading session on Monday, taking out the range lows that were initially set on Sunday evening. Despite the weakness, the price action continues to rotate closely within the three-week range between $65,000 and $71,000.
Derivatives data outlines a clear lack of bearish follow-through for a deeper correction, while the liquidity positioning may frame the next move on the opposite side of the current trading range.
The recent price drop swept liquidity around $64,000 and liquidated roughly $240 million in long positions. Despite the sell-off, Bitcoin has remained within the established range that has been in place since Feb. 6. A sideways trend often builds pressure for an expansion, especially as the volatility compresses.
