Look, Bitcoin is now above 77,000, but there's something strange happening in the derivatives that doesn't match the spot price. The funding rates on perpetual futures have been negative for over a month, meaning those shorting are still paying to hold their positions even as the price gradually rises. This is like a classic setup for a short squeeze, you know?

Since April, BTC has risen about 14%, helped by ETFs in the US and MicroStrategy buying billions in Bitcoin. But meanwhile, shorts are accumulating losses and haven't capitulated yet. The longer this standoff lasts, the more violent the reversal could be. A guy from K33 commented that traders are actively building short positions and betting against a breakout, which makes the conditions perfect for a short squeeze if the bullish momentum continues.

Data shows that Bitcoin ETFs received over 800 million in net inflows just last week. Charles Schwab is also launching crypto trading this year and suggested that clients can allocate up to 8.8% in Bitcoin. Each ETF purchase pushes the price higher and increases pressure on uncovered sellers, who are becoming more vulnerable.

The scenario is quite fragile. If BTC breaks above 76,000, some analysts believe it could extend to 85,000, and then a short squeeze could catch many people off guard. But the bears are still hedging with puts at 60,000 and 50,000, so protection is also being built. For now, the recovery is smooth, but any bullish catalyst could turn things serious.