Bitcoin bears face $2.6B trap as BTC funding rate drops: Is a short squeeze brewing?

Bitcoin bears piled into short positions as BTC price slid to $60,000. Will the $2.6 billion in short leverage lead to an upside squeeze?

Key takeaways:

The Bitcoin (BTC) crash to $61,100 on Friday wiped out $335 million in leveraged long positions. However, after a 21% decline in Bitcoin's price, bulls might have set a perfect trap as negative market sentiment intensified. Bearish positions built up heavily between $63,000 and $66,000, setting the stage for a potential $2.6 billion short squeeze.

Estimated cumulative Bitcoin liquidation at major exchanges, USD. Source: CoinGlass

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