Just noticed: The funding rates for Bitcoin perpetuals have fallen to -6% – the lowest level in three months. This is actually a classic signal for a potential short squeeze, considering that so many traders are betting on falling prices.

The background: When the funding rates become strongly negative, short positions pay long positions – a sign that aggressive shorting is underway. The last time this happened was in February at this level, just before BTC surged upward again. The open interest in coin-margined contracts has simultaneously risen to 687,000 BTC, even though prices are under pressure.

In the past 24 hours, over $500 million have been liquidated, mainly long positions. This indicates that the market is quite tense. Bitcoin is currently trying to regain the $64,000 mark – if successful, a short squeeze could gain significant momentum and push many of these short positions into the red. An interesting situation that you can't ignore right now.