Bitcoin prices have climbed nearly 10% over the past week, while declining funding rates suggest a potential short squeeze as traders bet against the cryptocurrency's sustained recovery.
Key Points
- Bitcoin is currently trading at approximately $73,425 following a 10% price increase over the last seven days.
- CryptoQuant data shows Bitcoin funding rates dropped to -0.011, marking the lowest level recorded since early February.
- Negative funding rates indicate that short sellers are currently paying fees to long traders, signaling a bearish market sentiment.
- Analyst Gaah warns that these extremely negative rates often act as a contrarian indicator, increasing the likelihood of a forced short squeeze.