Bitcoin Funding Turns Negative at $78K as Short Squeeze Expectations Build

Bitcoin traded near $76,000 on Tuesday, approaching its ten week highs as traders increasingly anticipate a possible short squeeze. Market data showed Bitcoin climbing toward $79,000 during the weekly session, while funding rates across major exchanges remained negative an unusual trend when prices are moving upward.

Current structure as a period of consolidation with an upward bias, suggesting Bitcoin could move toward $85,000 within the next two to three weeks. Bitcoin’s continued correlation with the Nasdaq, reinforcing expectations of broader market influence on crypto prices.

Resistance Levels and Technical Barriers Remain Key

Analysts highlight several resistance levels that bulls must overcome, including the 21-week exponential moving average (EMA), which has capped price momentum since October 2025. Market observers also noted that Bitcoin recently filled a large CME Group futures gap, although a portion remains open, signaling ongoing technical pressure.

Negative funding rates historically appear near market bottoms, while market intelligence platform Decode suggested the market remains heavily short-positioned. If buying pressure increases, a rapid short squeeze could drive prices higher, with $85,000 emerging as a near-term bullish target.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.