Funding Rates Negative amid FED announcement

Funding Rates Negative amid FED announcement.

Futures funding rates are the lowest since the beginning of December as traders anticipate bad news from the FED this afternoon. With funding rates signaling that traders are shorting this move up from Bitcoin, the potential for a short squeeze emerges. A short squeeze is when more than the majority of traders are short and price begins to move up. As these shorters begin to cover their positions (by entering long) it effectively pushes price up. Funding rates should not be used as buy or sell signals themselves but rather used alongside other indicators.

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