Feb 17, 2026
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BEARISH 📉 : Bitcoin funding rates turn negative as traders bet on decline
Bitcoin's recent price decline has resulted in increased bearish positioning among traders, with on-chain data revealing negative funding rates across major crypto exchanges.
- Funding rates are negative, with short sellers paying long traders, indicating a bearish sentiment.
- This level of deep short positioning was last seen in August 2024, which preceded a significant recovery.
- Santiment's data shows current funding rates below -0.01%, reflecting widespread short positioning.
- Historically, such extreme shorting can lead to a short squeeze, driving prices up as shorts cover positions.
- Bitcoin is trading at $68,740. A move above $75,000 could trigger bullish momentum and increase the likelihood of a short squeeze.
While heavy shorting creates potential for upside volatility, it does not ensure an immediate rebound.
