A large cluster of potential short liquidations near $111,320 could trigger a squeeze to accelerate Bitcoin’s next leg higher into price discovery.
Key takeaways:
Bitcoin's funding rate briefly turned negative in late June, historically a signal for upcoming rallies.
A large concentration of short liquidations near $111,320 could fuel a short squeeze.
BTC has broken out of a bull flag, targeting $117,500, new research suggests.
Bitcoin $BTC 108,894 future’s perpetual funding rate dipped into negative territory in late June, a period that saw BTC’s spot price rise to around $108,000 from below $100,000
Such a divergence signals a major price boom ahead for Bitcoin, history may indicate.
BTC bulls could trigger a short squeez.A negative funding rate means short-position holders are paying long traders to keep their positions open, a sign of bearish market sentiment.However, a negative funding rate during a general price uptrend often results in an overcrowded short trade vulnerable to a short squeeze.
In the case of Bitcoin, similar funding rate flips in September 2024 and July 2023 preceded 80% and 150% gains, respectively.
BTC funding’s latest recovery into positive territory mirrors those prior setups, suggesting that the bearish reset may have already played out and the market is once again gearing up for a fresh leg higher.$BNB $SOL #NFPWatch #REX-OSPREYSolanaETF #TrumpVsMusk #DYMBinanceHODL #StrategyBTCPurchase
