ChainCatcher news reports that K33 Research indicates signals emerging from the Bitcoin derivatives market show that the risk of a "short squeeze" is increasing, which could trigger a significant rebound in Bitcoin. This indicator is the funding rate of Bitcoin perpetual futures, which helps measure the bullish or bearish sentiment of speculators.K33 Research states that the seven-day average annualized funding rate as of August 20 is at its lowest level since March 2023, indicating that bearish bets are dominating. K33 Research analysts Vetle Lunde and David Zimmerman wrote in a report, "The perpetual swap funding rate has been negative over the past week, while open interest has surged, indicating aggressive shorting behavior, structurally creating a favorable situation for a short squeeze in the near term."In this short-term squeeze, unexpected price jumps force fast-money traders to close their short positions, further driving the price rebound.Recent sentiment in the Bitcoin market has been quite gloomy: losses were recorded in August, and it has struggled to maintain above $60,000. Meanwhile, global stock indices have rebounded to record highs, and gold has also reached new highs.

ChainCatcher message, Coinbase analyst David Duong stated: "Tuesday's market conditions indicate that with increased buying activity on centralized exchanges, a short squeeze could occur. We believe that market panic will persist in the short term, but shorts may be squeezed, which could lead to a market rebound in the coming days."Although prices have slightly rebounded, the Bitcoin futures funding rate remains negative over the past 24 hours. This indicates that demand for short positions is still high, suggesting that traders are still betting on a decline in Bitcoin prices.

ChainCatcher news, Singaporean crypto investment firm QCP Capital stated on social media that BTC has fallen below the $60,000 support level under heavy pressure, reaching a low of $57,875. BTC miners are showing signs of capitulation, which historically often indicates a price bottom.Despite the severe sell-off in the crypto market, the options market shows strong bullish sentiment for ETH, especially for ETH options expiring in September and December.QCP Capital noted that the liquidation clusters for BTC and ETH are skewed towards the top, which could trigger a short squeeze, and with the S-1 form approval approaching, if approved, it may lead to a strong rebound for ETH.

ChainCatcher news, Coinglass data shows that the BTC funding rates on multiple mainstream trading platforms have reached -0.1%. Among them, Binance is at -0.1164%, Bitmex at -0.2918%, Bybit at -0.0942%, Okex at -0.1439%, Huobi at -0.0802%, and FTX at 1.9160%. Currently, this indicator is highly negative, which may lead to a short squeeze.It is reported that the funding rate is an indicator of the periodic fees exchanged between traders in the Ethereum futures market. When this indicator value is negative, it means that short traders are paying a premium to long traders to maintain their positions, usually indicating that bearish sentiment is more dominant in the market; conversely, it suggests bullish sentiment. (Source link)