Bitcoin is showing a new short-term bullish signal, as evidenced by a short squeeze and extremely negative funding rates. According to analyst Josh of Crypto World, as of now, bullish move appears to be unfolding.

He said that not much has changed over the last day. Bitcoin’s price remains between support at just above $53,000 and resistance around $68,000. This range still shows a bearish trend, with lower highs and lows. Major support zones include $56,000 to $57,000 and $51,000 to $53,000.

Here’s a breakdown of Bitcoin charts by the analyst:

Bitcoin is close to breaking above resistance levels between $60,000 and $61,000. Beyond this, there are further resistance points at $62.8k to $63k, and a significant level between $67,000 and $68.3k. A breakout above these levels could turn previous resistance into new support.

Bitcoin recently bounced from a support line, indicating a potential bullish move. Historically, such bounces have led to short-term relief in price. The coin is currently removing liquidity above $60,000. He said that one still need to watch liquidity around $61.9k to $62.1k.

Why Are Funding Rates Important Factor?

Funding rates are a critical aspect to consider. Currently, they are extremely negative, which means that most traders are shorting Bitcoin. Negative funding rates indicate a high demand for short positions and a low interest in long positions. This situation often leads to a scenario where the minority—those holding long positions—benefit, as negative funding rates require short sellers to pay fees to long holders. Negative funding rates suggest most traders are bearish, which could lead to upward pressure if short positions are liquidated.