Bitcoin funding stays negative at $78K as short squeeze expectations grow

Bitcoin funding stays negative at $78K as short squeeze expectations grow

# Cloud Rewards and Green Crypto: How Bitcoin’s Negative Funding Rates Signal a Potential Short Squeeze

Key points:

  • As the world becomes increasingly digital, the way we earn and invest is changing. For those looking to capitalize on the growing trend of green crypto and passive rewards, the recent Bitcoin price movements are worth paying attention to. With funding rates staying negative at $78,000, market experts are betting on a new short squeeze, which could have significant implications for the sustainability of digital earning.

  • The current Bitcoin price grind higher, despite negative funding rates, has led market pundits to predict a fresh short squeeze. This could potentially drive the price up to $85,000 in the coming weeks, making it an exciting time for those invested in green crypto. However, bulls still need to clear the nearby 21-week trend line, which has been keeping the price pinned since October 2025.

  • The data suggests that Bitcoin is due for a short squeeze, with funding rates uniquely staying negative as the price continues to rise. This has led to a sense of cautious optimism among Bitcoin traders, with some predicting a period of consolidation but an overall upwards pattern. Crypto trader Michaël van de Poppe has given a time frame of “two to three weeks” for this level to come into focus, highlighting the potential for significant growth in the green crypto market.

“Cannon is loaded” for Bitcoin short squeeze

The ongoing negative funding rates on exchanges, despite the rising price, have also caught the attention of traders. As trader Osemka noted, “We’ve never actually gotten one when the chart was grinding up. NEVER. It only occurred during the local BOTTOMS.” This suggests that something is brewing beneath the surface, and the potential for another short squeeze is growing. Crypto market intelligence platform Decode has also weighed in, stating that the market is heavily short and bearish, and Bitcoin is setting up for a short squeeze.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

For those looking to capitalize on the growing trend of passive rewards and green crypto, the current market conditions are worth paying attention to. With multiple lines in the sand for bulls lying immediately above the spot price, including the 21-week exponential moving average (EMA) and average buy-in price for investors of the US spot Bitcoin exchange-traded funds (ETFs), the potential for significant growth is there. As the market continues to follow the headlines and wait for the next big move, one thing is clear: the future of digital earning is looking increasingly sustainable, and the potential for cloud rewards is on the rise.

Mixed signals over the US-Iran war continued on the day, with Iran denying that its delegations had arrived in Pakistan for a new round of negotiations with the US. As Cointelegraph reported, markets offered only a muted reaction to the latest closure of the Strait of Hormuz oil route.

Among Bitcoin traders, a sense of cautious optimism was slowly growing.

“A period of consolidation, but clearly upwards pattern,” crypto trader Michaël van de Poppe wrote in an X post. 

“This means that there’s likely more upside to come for Bitcoin towards the $85,000 area.”

Van de Poppe gave a time frame of “two to three weeks” for that level to come into focus, reiterating earlier comments about Bitcoin’s correlation with the Nasdaq.

BTC/USDT one-day chart. Source: Michaël van de Poppe/X

Others focused on ongoing negative funding rates on exchanges, despite price rising.

“We’ve never actually gotten one when the chart was grinding up. NEVER. It only occurred during the local BOTTOMS,” trader Osemka noted on X alongside charts showing past negative funding periods.

Osemka suggested that “something is brewing beneath” the surface, just as BTC/USD eyed a reclaim of lost support.

Binance BTC/USDT futures one-day chart. Source: Osemka/X

Responding, crypto market intelligence platform Decode agreed, seeing the potential for another short squeeze.

“What this tells you is that the market is heavily short and bearish, and Bitcoin is setting up for a short squeeze. The cannon is loaded, bulls just need to light the fuse…,” it told X followers.

CME gap thins with BTC up against resistance

Multiple lines in the sand for bulls lie immediately above the spot price.

Related: Bitcoin can grow ‘probably a lot bigger’ than $30T+ gold market — Analysis

These include the 21-week exponential moving average (EMA), true market mean, and average buy-in price for investors of the US spot Bitcoin exchange-traded funds (ETFs).

BTC/USD one-day chart with 21-week EMA. Source: Cointelegraph/TradingView

Trader Daan Crypto Trades observed that price had also filled the latest weekend “gap” in CME Group’s Bitcoin futures market.

“$BTC Closed a big part of the gap from this weekend but still not everything. Market still just following the headlines and no $STRC raises for now. So we will just patiently wait and see,” he commented.

CME Bitcoin futures one-hour chart. Source: Daan Crypto Trades/X

This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research before making any decisions. Cointelegraph makes no guarantees regarding the accuracy or completeness of the information presented, including forward-looking statements, and will not be liable for any loss or damage arising from reliance on this content.

  • #Bitcoin
  • #Bitcoin Price
  • #Markets
  • #Market Analysis


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