Strong short squeeze potential
Bitcoin prices and funding rates are diverging. While BTC trends higher, funding continues to fall, with 7-day rates on par with February lows alongside rising open interest. This setup increases the likelihood and potential magnitude of a short squeeze.
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Bitcoin posted a 2% weekly gain, reaching three-month highs near $78k, supported by solid supply absorption. ETPs and Strategy alone accumulated 56,068 BTC over the past week, yet the price response has been relatively muted. On-chain data shows no clear distribution from long-term holders, suggesting recent selling likely came from existing exchange balances, either for profit-taking or positioning for downside.We continue to view $60k as the likely low for this drawdown and see higher highs as the more probable path ahead. Derivatives positioning remains heavily bearish, with 7-day funding rates near three-year lows, leaving room for a short squeeze. Combined with ongoi
