Bitcoin shorts just hit their most extreme level in years as BTC defiantly holds above $70k
Bitcoin derivative traders are heavily shorting BTC, reaching extreme negative funding rates not seen since August 2024, despite BTC holding above $60k.Summary
Bitcoin is trading in a tight range below $70,000, leading derivative traders to aggressively position for further downside, evidenced by funding rates hitting their most negative level since August 2024, meaning shorts are paying longs.
This crowded short positioning creates potential for a squeeze if prices rise, but persistent bearish sentiment is rooted in the trauma of the October 2025 deleveraging event. Technical analysis suggests BTC is currently absorbed within a $60,000 to $72,000 demand corridor, with significant overhead supply clusters above $82,000.
Further caution is seen in options markets, where traders are paying a premium for downside protection (puts), and spot Bitcoin ETF flows have recently shown net outflows. The market faces three potential paths: a squeeze rally hitting resistance, a continued range grind with subdued leverage, or a structural breakdown below $60,000, all while remaining sensitive to macro conditions.
(Source：CryptoSlate)