Bitcoin’s Bearish Positioning Reaches Historic Levels
- Recent data shows a significant increase in bearish positioning across major crypto exchanges.
- Santiment reports that aggregated funding rates have fallen into deep negative territory, with funding rates now less than -0.01%.
- The last time such extreme negative levels were observed was in August Bitcoin saw an approximately 83% rally over four months.
- Current Bitcoin trading price is $68,740, while the short-term cost basis is around $90,900.
The current deep short positioning indicates a strong bearish sentiment among traders, similar to patterns seen in past market bottoms before significant rallies. Funding rates are a key indicator of market sentiment and are currently showing that short sellers are paying long traders due to negative rates.
This extreme level of shorting could potentially lead to a short squeeze if Bitcoin’s price begins to rise, forcing traders to cover their positions and creating upward pressure on the price. (Source)
