$BTC Funding Rate data from CryptoQuant shows us:

- From February 2026 to present, the Funding Rate has continuously maintained a negative level. Basically, this indicates that the Short side is dominating and has to pay fees to the Long side to maintain their positions.

- The market is extremely pessimistic and expects the price to collapse even deeper.

- Despite heavy Short pressure, the $BTC price remains resilient and moves sideways around the $77.5K zone, refusing to break down to new lows.

- When the majority of traders lean in one direction but the price refuses to decrease further, it proves that the supply has been completely absorbed by the buyers. This is a perfect setup for a Short Squeeze.

- When the price just inches up a bit, the Short side will panic and close their orders (by buying back), inadvertently creating a massive buying force that pushes the price up strongly.

The crowd is often wrong at turning points. Trade based on data, not emotions!

Written by Rei Researcher