Bitcoin funding rate signals bullish pivot as $111,320 liquidation risk nears
Bitcoin’s funding rate briefly dipped negative in late June. Historically, such divergence preceded prolonged rallies, with BTC rising from near $100,000 to approximately $108,000 during that period.
Historical precedents suggest continued ascent
A negative funding rate indicates short traders are ‘paying’ long positions to hold, suggesting overcrowded short structures vulnerable to squeezes. BTC’s prior negative funding rate instances (Sept 2024, July 2023) led subsequent price surges of 80% and 150%. The current funding rate recovery echoes those levels, signaling a possible fresh bullish phase.
Bulls eye short squeeze at $111,320 barrier
CoinGlass data reveals a stark concentration of leveraged short positions concentrated at the near-$111,320 level on the BTC/USDT pair, shielding an estimated $520.31 million worth of trades. Triggering a short squeeze at this point could significantly accelerate price appreciation by forcing rapid buybacks.
A short squeeze occurs when a highly shorted asset’s price rapidly increases, forcing short sellers to cover their positions at rapidly rising prices, thus amplifying the upward movement.
Technical chart suggests $117,500 target
Technical analysis points to a confirmed breakdown above the upper trendline of a bull flag formation on the BTC/USD daily chart.
Based on the preceding flagpole, the measurement objective targets an approximate $117,500 resistance level, a figure closely aligned with analyst Markus Thielen’s $116,000 BTC price estimate for late July.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
