Analysis: "BTC Possible Short Squeeze Rebound Due to Overheated Bearish Bets"
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Cointelegraph reported that BTC traders' bearish bets are heating up, raising the possibility of a rebound following a short squeeze. Currently, BTC's average funding rate has fallen sharply into negative territory for the first time since March 2023 and November 2022. Regarding this, cryptocurrency analyst Leo Ruga analyzed that "this indicates overheated bearish bets, which usually occur during the bottoming phase." Another analyst, Pelin Ay, predicted that "if the funding rate falls sharply and is accompanied by a price drop, the $58,000 level could serve as support, setting the stage for a short squeeze." The outlet added, "However, this requires liquidity support, and the USDT market cap has recently decreased by $2.87 billion."
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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