Negative Bitcoin funding rate may signal pending short-squeeze above $70K

CoinTelegraph

by Biraajmaan Tamuly

February 23, 2026

AI-Generated Deep Dive Summary

Bitcoin’s recent price action has raised intriguing possibilities despite its current range-bound trading pattern. While the cryptocurrency dropped to a weekly low of $64,111 during Monday’s New York session, it has remained within the $65,000-$71,000 range established since February 6. This resilience comes amid a negative funding rate and flatlining open interest in derivatives markets, suggesting that bears may be struggling to gain traction. The lack of significant bearish follow-through indicates that any potential correction could be limited, with the market instead setting up for a possible short-squeeze above $70,000. The recent price decline, which swept liquidity around $64,000 and liquidated approximately $240 million in long positions, has not triggered a broader sell-off. This lack of bearish momentum aligns with derivatives data, which shows that the market is currently under compression due to sideways trading. Such conditions often build pressure for a potential breakout or breakdown, especially as volatility remains subdued. Bitcoin’s ability to stay above $64,000 despite recent selling pressure suggests that bulls are holding firm, possibly positioning themselves for a rebound. The current sideways trend in the crypto market is not unusual and can be seen as a period of consolidation before a significant move. However, the combination of a negative funding rate and reduced volatility adds an interesting dynamic to this setup. A negative funding rate typically indicates that shorts are overhanging the market, which

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Originally published on CoinTelegraph on 2/23/2026