Bitcoin Pulls Back, But Futures Traders Turn Bullish: Long Squeeze Setup?

Data shows the Bitcoin Funding Rate for the perpetual futures market has turned positive recently, a sign that bullish positions are dominating.

When the value of this indicator is positive, it means long contract holders are paying a premium to the short investors. Such a trend implies a bullish sentiment is dominant in the market. On the other hand, the metric being below zero suggests a bearish mentality may be shared by the majority of futures market traders, as shorts are outweighing the longs.

Now, here is the chart shared by Glassnode that shows the trend in the Bitcoin Funding Rate over the last few months:

The market bias began to shift in mid-May, with the average Funding Rate reversing into the green zone. Today, the indicator is sitting at a notable positive level, suggesting that investors are betting on a bullish outcome for the cryptocurrency.

From the above heatmap, it’s visible that Bitcoin-related positions have suffered a total of $104 million in liquidations over the past day. Out of these, more than $85 million of the contracts involved have been bullish bets.

Bitcoin is back at the $75,900 mark following its latest pullback.