BTC may see short squeeze rebound amid overheated bearish bets

The possibility of a BTC rebound driven by a short squeeze is growing as bearish bets become overheated, Cointelegraph reported. The average funding rate for BTC has entered strongly negative territory for the first time since March 2023 and November 2022. Cryptocurrency analyst Leo Ruga noted that this indicates overheated bearish sentiment, a phenomenon often seen during a market bottoming phase. Another analyst, Pelin Ay, suggested that if a sharp price drop accompanies the negative funding rate and the $58,000 level holds as support, it could set the stage for a short squeeze. However, the outlet added that such a move would require liquidity support, noting that the market capitalization of USDT recently decreased by $2.87 billion.