Bitcoin Price Forecast: BTC Short Positions Reach Highest Point Since 2024 Low – Is a Significant Squeeze Imminent?

Funding rates for Bitcoin across leading exchanges have plummeted to their most negative points since August 2024.

At that time, the market was similarly convinced that further declines were unavoidable. However, that significant short positioning marked a crucial bottom and was followed by an 83% surge in the subsequent months.

Source: Santiment

A comparable situation is unfolding now. Traders are heavily positioned for a downturn, with shorts accumulating.

Concurrently, on-chain metrics indicate that profit buffers are minimal. The Net Unrealized Profit/Loss (NUPL) has reverted to the 0.18 range, historically linked to Hope and Fear.

In this environment, markets tend to be reactive. Minor fluctuations provoke significant reactions as holders lack substantial unrealized gains to absorb volatility.

Market sentiment remains wary. Outflows from ETFs and macroeconomic uncertainty sustain the bearish outlook. However, crowded trades seldom unwind smoothly.

The current setup is not solely about technical strength; it revolves around risk positioning. If Bitcoin’s price surpasses the $70,000 to $70,600 range, the short squeeze narrative will quickly gain traction.

Key Takeaways

• Negative funding rates across exchanges have reached 2024 lows, reflecting extreme bearish sentiment.
• A breakout above the $70,610 resistance level could initiate a significant Bitcoin short squeeze targeting $76,000.
• On-chain indicators reveal thin profit margins, ensuring high market volatility in the near term.

Bitcoin Price Prediction: Is BTC Preparing for a Significant Squeeze?

On the chart, Bitcoin has already exited that steep descending channel and is currently hovering just below the $70K to $71K supply zone.

This zone is significant. It aligns neatly with previous resistance levels. Above $71K, resistance diminishes toward $80K, with $90K and even $98K serving as higher air pockets if momentum accelerates.

Source: BTCUSD / TradingView

$64K remains the critical level that maintains the structure. If that level fails, $60K becomes the last major demand zone before the chart begins to appear unstable again.

Now consider positioning. Funding is deeply negative. Shorts are prevalent. NUPL resides in the Hope and Fear range. This combination frequently generates momentum for a sharp upward movement when resistance is breached.

Thus, technically, Bitcoin is consolidating beneath a key ceiling. Structurally, it is no longer in a free fall. Positioning indicates that the market is heavily skewed toward short positions.

When Bitcoin Prepares for a Squeeze, Bitcoin Hyper Provides Additional Momentum

Bitcoin continues to experience significant fluctuations. It requires macro alignment, ETF stability, and robust spot demand to fully ignite. This process takes time.

Bitcoin Hyper ($HYPER) is designed for speed.

This Bitcoin-centric Layer-2 solution, powered by Solana technology, enhances BTC‘s speed, reduces costs, and enables real on-chain activity without compromising core security. It harnesses Bitcoin’s narrative strength while unlocking functionalities that the base layer cannot offer independently.

Momentum is already apparent. The Bitcoin Hyper presale has raised over $31 million to date, with $HYPER priced at $0.0136751 before the next increase. Staking rewards currently reach up to 37%.

If Bitcoin experiences a squeeze, Bitcoin Hyper accelerates. If Bitcoin stagnates, Bitcoin Hyper continues to progress.

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The post Bitcoin Price Prediction: BTC Shorts Hit Their Most Extreme Level Since the 2024 Bottom – Is a Massive Squeeze Coming? appeared first on Cryptonews.