Odaily Planet Daily News K33 Research said that signals emerging in the Bitcoin derivatives market show that the risk of a "short squeeze" is increasing, which could trigger a sharp rebound in Bitcoin. This indicator is the funding rate of Bitcoin perpetual futures, which helps measure the long or short sentiment of speculators. K33 Research said that the seven-day average annualized funding rate as of August 20 was the lowest since March 2023, indicating that bearish bets dominate. "The perpetual swap funding rate has been negative over the past week, while open interest has increased sharply, indicating aggressive shorting behavior, which structurally creates a favorable situation for a short squeeze," wrote K33 Research analysts Vetle Lunde and David Zimmerman in a report. In this short squeeze, an unexpected price jump forces fast money traders to close short positions, further driving the price rebound. Sentiment in the Bitcoin market has been low recently: it has suffered losses in August and has struggled to stay above $60,000. Meanwhile, global stock market indices have rebounded to record highs, while gold has also hit new highs. (Bloomberg)

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