Bitcoin Shorts Surge as Funding Turns Deeply Negative—Is a Short Squeeze Coming?
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The post Bitcoin Shorts Surge as Funding Turns Deeply Negative—Is a Short Squeeze Coming? appeared first on Coinpedia Fintech News The Bitcoin price is yet again facing significant upward pressure as the token has plunged below $66,000 from an intraday high of over $68,400. Observing the current trade dynamics, it appears that the star crypto is entering a high-tension phase as traders are now expecting the price to plunge. The short bets are increasing notably and have reached a level that usually results in sharp volatility. This suggests the BTC price may get exposed to more sell pressure or a sudden short squeeze may catch bears off-guard. With Bitcoin hovering near key technical levels, the imbalance between rising short interest and cooling spot momentum is creating a fragile setup. The question now is whether this wave of bearish bets will push BTC lower or fuel the next breakout. Bitcoin Short Positioning Hits Extreme Levels Recent derivatives data from Santiment show a clear spike in short exposure, with funding rates slipping deeply into negative territory. Negative funding means short traders are paying longs to keep their positions open, a sign that bearish sentiment has become crowded. When funding stays mildly negative, it often reflects healthy hedging. But when it turns sharply negative, it suggests positioning is becoming one-sided. Markets tend to punish extreme consensus. If too many traders lean in the same direction, even a small upward move can trigger forced liquidations, accelerating the price higher in a short squeeze. At the same time, open interest remains elevated, indicating that leverage is still active in the system. High open interest combined with negative funding creates a volatility setup, price does not stay compressed for long under these conditions. The key now is whether spot demand can absorb selling pressure. If buyers…
Filed under: News - @ February 13, 2026 12:27 am