BitcoinBTC( is due to a classic “short squeeze” New analysis says that open interest has reached a five-week peak.
Important points
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Bitcoin’s open interest is rising and funding rates are falling.
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Short positions could be punished by the funding rate, which is at its lowest level since early February.
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Bitcoin is net-long again for large Bitcoin traders.
Bitcoin short squeeze likelihood “increasing”
One of the “QuicktakeCryptoQuant, a blockchain analytics platform that published a blog post on Saturday, said Bitcoin was “crowded” Short positions.
“BTC is flowing out of exchanges while funding rates remain strongly negative, creating an increasingly crowded short positioning environment where the potential for a short squeeze is building,” contributor CoinNiel summarized.
You can also read our article on After BTC/USD passed $73,000 Traders appeared to be eager on Friday to capture those traders who entered the markets betting that prices would continue rising. Funding rates stayed negative on exchanges, while open interest grew to $24.2 billion — its highest since early March.
“Since March, negative funding has become more frequent, and throughout April it has remained in negative territory without flipping positive,” The post continues.
“This indicates that short positions dominate the market, with shorts paying longs, and such extreme positioning can act as a trigger for a reversal through forced liquidations.”
CoinNiel has said that the combination rising open rates of interest with negative funding rates creates a coinNiel. “suggests that leveraged short positions have been rapidly accumulating.”
“The slight decrease does not yet indicate a meaningful deleveraging phase,” He acknowledged.
Gaah, a fellow contributor to the article, agreed that the funding rate had reached its lowest value in years since Bitcoin plunged down to multi-year lows.
“Caution is needed when establishing positions in current range, since it represents an area of buying demand,” He wrote in an further Quicktake post.
“Bears trapped? Likelihood of a short squeeze is increasing.”
Bitcoin traders copying the 2023 rise
Earlier, Cointelegraph reported On short liquidations, the price of BTC is still modest.
Related: Bitcoin analysis sees $55K BTC price ‘iron bottom’ by December 2026
The Data of CoinGlass The cross-crypto transactions totaled under $100 million in the last 24 hours.
The mood among participants in the market has begun to gradually change. favor fresh upsideTargets including $80,000 and higher.
On Saturday, crypto trader Michaël Van de Poppe eyed increasing belief in a BTC price rebound among large-volume speculators.
“Speculators are net long on Bitcoin. Very similar to previous cases where we’ve seen the same before a big breakout in 2023,” He wrote Posting on X.
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Source: cointelegraph.com
