Bitcoin short-squeeze to $90K possible as funding rates turn negative
26.11.2025
3536
Negative Bitcoin funding rates and large short liquidity zones could be a sign that a short-squeeze to $90,000 and higher could be on the cards.
Bitcoin short-squeeze to $90K possible as funding rates turn negative
BTC's recovery from last week's brutal correction is gaining momentum, pushing back toward the $87K-$90K zone after that wild slide from $106K to $80.6K in just 10 days. The rebound has everyone asking: has Bitcoin found its local bottom, even while key whale groups keep dumping?
- • BTC whales and retail traders stayed net sellers, but mid-sized holders kept accumulating hard
- • Accumulator-address demand smashed records at 365K BTC, signaling serious long-term confidence is back
- • Negative funding rates scream trader capitulation and set the stage for a massive short squeeze
BTC distribution meets a slow-building accumulation trend
On-chain data from CryptoQuant reveals a market split down the middle. Wallets holding 10K+ BTC and the 1K-10K institutional crew have been steady distributors throughout the crash, creating structural weakness. Retail wallets (<10 BTC) have also been net sellers over the past 60 days, offering zero support during the downturn.
Meanwhile, mid-sized holders (10-100 BTC and 100-1,000 BTC ranges) have been accumulating through the entire correction, absorbing massive sell-side pressure. These groups are getting louder as demand from Bitcoin 'accumulator addresses' exploded to an all-time high of 365K BTC on Nov. 23, up from 254K BTC on Nov. 1—that's conviction-driven demand on steroids.
The battle between these groups could stabilize BTC after the initial crash, building the foundation for the rebound toward $90K.
Negative funding rates hint at a short squeeze
The futures market absolutely dominated the recent crash—cascading long liquidations, forced selling, and margin calls drove BTC straight into the $80K range. Now, futures data shows leveraged longs are completely exhausted.
CryptoQuant reports that traders who tried to long the correction 'have finally been squeezed out,' with daily funding rates cooling dramatically and briefly turning negative. With Binance's neutral funding level near 0.01%, any dip below signals short dominance—classic trader capitulation late in a correction.
Crypto analyst Darkfost warned that if shorts keep piling in while BTC grinds higher, we could enter a classic 'disbelief phase,' setting up a brutal short squeeze.
Liquidation heatmaps from Hyblock Capital back this up: long liquidations totaled $2.6B at $80K, while short liquidations surged over $8.4B near $98K. Dense liquidity bands at $94K, $98K, and $110K could act like magnets for Bitcoin's price action.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
#Cryptotrading#Position Liquidation#Bitcoin price increase#Cryptocurrency market#Short Squeeze
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