Bitcoin breakout odds rise on negative funding

Bitcoin's short squeeze potential is increasing due to persistent negative funding rates, according to K33. The 30-day average funding rate has remained negative for 46 consecutive days, a duration not seen since the bear market bottom in late 2022. This sustained negative sentiment, coupled with rising open interest and increasing Bitcoin prices, suggests significant bearish aggression. K33 believes this scenario elevates the probability of a short squeeze, where heavily shorted positions are forced to close, driving prices higher.