Bitcoin’s perpetual funding rates have turned negative across major exchanges like Binance and OKX, indicating short sellers are paying to maintain bearish positions. Analysts note this extreme positioning could set the stage for a short squeeze if the price rallies, while data also shows a recent spike in retail trading activity. Bitcoin’s price briefly tested $70,000 before consolidating below $68,000.
Bitcoin perpetual funding rates on major exchanges have flipped negative, signaling that short sellers now dominate the derivatives market. These traders are paying long holders to keep their bearish positions open.
Analyst Amr Taha noted the shift with Binance at -0.005%, OKX at -0.007%, and Bybit at -0.011%. They pointed to data showing dense clusters of leveraged short positions above the current price.
Taha stated that historically, heavy short exposure has often foreshadowed sharp reversals. “If macroeconomic conditions improve, the probability of a renewed price pump in the short to medium term increases,” Taha wrote.
Separate data indicated a spike in trading frequency among smaller investors. One analyst said this suggests retail participants are re-entering the market after a period of caution.
Taha also tracked roughly 1,700 BTC in net inflows from medium-term holder wallets into Binance. This was notably less aggressive than a similar 5,000 BTC inflow in early February that preceded a price drop.
Bitcoin briefly tested $70,000 but failed to hold that level. It has since consolidated in a range between approximately $66,600 and $68,600 over the past day.
