Bitcoin Shorts Surge as Funding Turns Deeply Negative—Is a Short Squeeze Coming?

The Bitcoin priceThis zone has capped recent recovery attempts. A strong daily close above $72,000 with expanding spot volume could trigger a short squeeze. If that happens, liquidation clusters sit near $75,500, followed by $78,000. A squeeze extension could target the $82,000–$85,000 liquidity pocket, where prior distribution occurred.This is the current pivot zone. A decisive breakdown below $59,000 on rising volume would invalidate squeeze expectations in the short term. In that case, downside targets sit at $54,000, followed by the major demand block around $50,000–$52,000.

Open interest remains elevated, meaning leverage is still active. If price breaks either boundary with conviction, volatility could expand quickly. For traders, the setup is clear: above $72K favors squeeze dynamics; below $59K shifts the structure toward a deeper correction.

What’s Next for Bitcoin Price as Shorts Crowd the Market?

Bitcoin price is sitting at a leverage-heavy turning point. Deeply negative funding shows that traders are leaning aggressively short, but extreme positioning alone does not guarantee a squeeze. It simply increases the probability of volatility.

If the BTC price reclaims $72,000 with strong spot demand, the imbalance in shorts could fuel a move toward $75,500 and potentially $78,000. However, without real buying pressure, rallies may continue to fade. On the downside, losing $59,000 would confirm that sellers remain in control, opening the door to $54,000 and possibly the $50,000–$52,000 demand zone.