According to @cas_abbe, BTC funding rate has flipped negative as bears short into each rally, a pattern he says often appears near local bottoms and can precede a short squeeze; this frames a contrarian setup for traders to watch (source: @cas_abbe on X, Nov 24, 2025). Negative funding typically indicates that short positions dominate Bitcoin perpetual swaps and are paying funding to longs, highlighting bearish positioning that can unwind quickly if price rises (source: Binance Academy, What Are Funding Rates?). For confirmation of a potential squeeze, traders can monitor whether funding normalizes toward neutral while price advances and whether aggregate open interest declines, signaling short covering rather than new longs (sources: Binance Academy; CryptoQuant research on funding, open interest, and squeeze dynamics).

According to @rovercrc, Bitcoin (BTC) funding rates turned negative on perpetual futures, meaning shorts are paying longs, a condition tied to net short pressure in derivatives markets (source: @rovercrc on X, Oct 17, 2025; source: Binance Futures Funding Rate guide). Negative funding has been associated with contrarian, squeeze-prone conditions when open interest is elevated and liquidity is thin, based on prior market studies (source: Binance Research; source: Glassnode Insights). For trade execution, monitor venue-weighted funding rates, aggregated open interest, and spot–futures basis to confirm momentum shifts and reduce false signals (source: Coinglass data; source: CME Group education).

According to @EauDoon, BTC has seen increasing positive sentiment over the past 24 hours, but funding is rising faster than the price; late buyers should proceed with caution (source: @EauDoon on X).

According to glassnode, despite rising open interest (OI), the average funding rate for Bitcoin futures has decreased to -0.023%, indicating a strong tilt towards short-side positioning among BTC traders. This shift suggests that many market participants are betting against the recent price rally. If bullish momentum continues, it could trigger a short squeeze scenario, forcing short sellers to cover their positions and potentially driving the price higher (source: glassnode, April 25, 2025). Traders should monitor funding rates and OI for potential volatility and rapid price movements.