PelinayPA2026-02-11

Is a Short Squeeze Operation Coming in Bitcoin?

Bitcoin’s price has dropped sharply to the 66.5K region. Meanwhile, the funding rate is at -0.0012 and even lower, with occasional sharp negative spikes. This indicates that the market is aggressively positioned on the short side. When funding is negative, it means short positions are paying longs in other words, there is a heavy short concentration in the market. Psychologically, this shows that investors believe the downtrend will continue. The market has shifted into fear and defensive mode. Leveraged short positions are accumulating. When negative funding and a sharp price decline occur together, it often sets the stage for a potential short squeeze. If selling momentum weakens, even a small wave of short liquidations could be triggered. Trapped shorts eventually have to close their positions. This kind of reaction could potentially come from the $58,000 support level. Since Binance has the highest derivatives volume, a significant portion of the leveraged positions that truly move the price are opened there. That’s why it’s important to pay attention to this chart. Binance is the backbone of the crypto market, and imbalances formed there often put pressure on price action.