✅Bitcoin [BTCUSD -0,90%] temporarily dropped below $90,000 on January 8, reaching a daily low of $89,253 before recovering to around $91,000, triggering $128 million in long position liquidations amid increased market volatility.
✅Three key indicators point to potential short squeeze conditions: Binance's funding rate turned negative at -0.002 (the deepest since November 2025), open interest continues to rise despite falling prices, and Bitcoin's estimated leverage ratio hit a one-month high😳
✅The deeply negative funding rate means short sellers are paying fees to maintain bearish positions, creating an asymmetric risk where over-leveraged shorts could face cascading liquidations if prices rebound, according to analyst Burak Kesmeci
