Bitcoin Short-squeeze To $90k Possible As Funding Rates Turn Negative

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’s (BTC) recovery from last week’s deep correction is beginning to solidify, with the price pushing back toward the $87,000 to $90,000 zone after sliding from $106,000 to $80,600 in just 10 days.

The rebound has revived discussions about whether BTC has reached a local bottom, even as a key whale cohort continued to offload its supply.

BTC whale and retail cohorts remained net sellers, but mid-sized holders continued to accumulate.

Accumulator-address demand hit a record 365,000 BTC, suggesting a return of long-term confidence.

Negative funding rates hinted at trader capitulation and the drive for a short squeeze.

Onchain data showed a market defined by uneven cohort behavior. Wallets holding more than 10,000 BTC, along with the 1,000 BTC to 10,000 BTC institutional cohort, have been steady distributors throughout the decline, fueling structural weakness. Retail wallets, those holding under 10 BTC, have also been net sellers over the past 60 days, offering little support during the downturn.

In contrast, mid-sized holders in the 10–100 BTC and 100–1,000 BTC ranges have been accumulating throughout the correction, absorbing part of the sell-side pressure.

These cohorts have grown more visible, as demand from Bitcoin “accumulator addresses” climbed to an all-time high of 365,000 BTC on Nov. 23, up from 254,000 BTC on Nov. 1, marking a substantial increase in conviction-driven demand.

The interplay between these groups could help stabilize BTC after the initial drop, laying the groundwork for the rebound toward $90,000.

Source: CoinTelegraph