Bitcoin Shorts Reach Most Extreme Level Since 2024 Bottom

February 15, 2026 - 02:16

The cryptocurrency market is bracing for potential volatility as data reveals traders have amassed a near-record level of bearish bets against Bitcoin. This surge in short positions, not seen since the market found its footing in early 2024, coincides with the flagship cryptocurrency testing the crucial $70,000 support level.

Analysts point to a significant drop in funding rates across major exchanges, which have fallen to their lowest levels this year. This metric is often interpreted as a sign of excessive pessimism or leveraged short selling in the perpetual futures market. Such extreme positioning frequently sets the stage for a sharp reversal, known as a short squeeze.

In a short squeeze, rapidly rising prices force traders who bet on a price decline to buy back Bitcoin to cover their losses, inadvertently fueling further upward momentum. Market observers suggest that a decisive break above key overhead resistance could trigger such an event, with a primary technical target noted near $76,685. The current market setup indicates a tense standoff between confident sellers and the underlying potential for a rapid, forceful rally.