• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Sensei Inu Logo Sensei Inu Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino
Breaking News: BREAKING: Three Arrows Capital Co-Founder Receives 4-Month Jail Sentence In Singapore
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino
Bitcoinist.com
No Result
View All Result
Breaking News: BREAKING: Three Arrows Capital Co-Founder Receives 4-Month Jail Sentence In Singapore
Bitcoin

Bitcoin Could See a Massive Squeeze as Funding Rates Flip “Extremely Negative”

Cole Petersen by Cole Petersen
3 years ago
in Bitcoin
0
  • Bitcoin’s price action has been lackluster as of late, providing investors with few insights into the cryptocurrency’s near-term outlook as it consolidates
  • Although from a technical perspective, it remains unclear as to where it might trend in the near-term, there are a few factors that may provide investors with some guidance
  • One such factor that could have some influence over the digital asset is its funding rates, which have flipped negative throughout the past few weeks
  • Extremely negative funding is oftentimes viewed as a counter-indicator, suggesting that significant upside is imminent in the days and weeks ahead
  • One analyst is expecting Bitcoin to see an intense short-squeeze as bulls liquidate overzealous short-positions

Bitcoin and the entire crypto market have been caught within the throes of a consolidation phase. This has done little to offer insight into where the cryptocurrency market trend in the days and weeks ahead.

BTC’s trading range, which was first formed a couple of weeks ago, exists between $10,200 and $11,200. Both of these levels have been holding strong, with bulls and bears being unable to make any meaningful advances towards them.

Where the benchmark cryptocurrency trends next may be heavily influenced by its negative funding rates.

At the moment, it is quite expensive to sit within short positions due to the high demand from traders to have sell-side positioning.

One analyst thinks this will catalyze an intense “short squeeze.”

Bitcoin Consolidates as Traders Flip Short 

At the time of writing, Bitcoin is trading sideways at its current price of $10,630. This is where it has been trading for the past few hours.

Despite not having any clear momentum, demand for short positions is incredibly high, which has caused funding rates to dive into extremely negative territory.

This means it is costly to sit within a short position, and profitable, by default, to have long exposure.

Analyst: Negative Funding to Spark a Short Squeeze

One trader noted that the massive number of open short positions could open the gates for Bitcoin to see a notable short squeeze in the near-term.

He notes that although he is sitting out of the chop, he wouldn’t be surprised to see Bitcoin’s price rally higher in the near-term.

“This BTC funding… About as high as I can ever remember. Wouldn’t be surprised to see a pop up to squeeze overzealous shorts at HTF support. Personally still sitting out of the chop,” he said.

Where the market trends in the coming days will depend solely on Bitcoin. As such, a short squeeze that can potentially help shift its trend into bull’s favor could also allow altcoins to see explosive momentum.

Featured image from Unsplash.
Pricing data from TradingView.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Cole Petersen

Cole Petersen

Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has been interested in Bitcoin and the crypto markets since 2013.

Related Posts

Crypto

A Crypto Recession Looming? Commodity Strategist Raises The Red Flag

2 hours ago
Bitcoin Silk Road Ross Ulbricht

10 Years In Prison: How Ross Ulbricht’s Silk Road Accelerated Bitcoin Adoption

1 day ago
Bitcoin price $30,000

Bitcoin Price Sets Sights On $30,000 As Holder Metric Hits New All-Time High

4 days ago
Bitcoin

Bitcoin Long-Term Metrics Point To A Different Scenario Than 2019 Fakeout: Top Analyst

4 days ago
Bitcoin

Bitcoin Hash Rate: Public Miners Account For Just 28% – Is Decentralization In Jeopardy?

4 days ago
Bitcoin

Bitcoin Recent Hiccup: Understanding The Invalid Block 

5 days ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Play Finance

Top Casinos

Trust Dice
Trust Dice
Punt Casino
Punt Casino
mBit
mBit

Press Releases

  • New Crypto Gem Ready To Upheave The Ethereum Staking...

    3 hours ago
  • 1B XRP Unlocked: Ripple (XRP) has more chances to grow than...

    5 hours ago
  • Solana (SOL) and Cardano (ADA) New Price Targets –...

    7 hours ago
  • Polygon (MATIC) and Polkadot (DOT) Breaking Trendline with...

    7 hours ago
  • Scorpion Casino Token Look Set for Higher ROIs than Bitcoin...

    7 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino

© 2023 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.