Bitcoin Shorts Reach Most Extreme Level Since 2024 Bottom

Bitcoin is attempting another breakout toward $70,000 after weeks of choppy consolidation. BTC trades at $69,815, sitting just below the $70,610 resistance level. A sustained move above $70,000 could shift sentiment, but mixed on-chain and derivatives signals make the short-term outlook uncertain.

Aggregated funding-rate data across major crypto exchanges show a surge in short positioning, with negative funding levels deepest since August 2024 — a period that marked a significant Bitcoin bottom. Back then, crowding into downside bets preceded a sharp reversal that sparked widespread short liquidations and an approximately 83% rally over the following four months.

The Net Unrealized Profit and Loss (NUPL) indicator has dropped into the Hope/Fear zone near 0.18, indicating thin profit cushions among holders. Historically, moves into this zone have been followed by reactive market behavior and intensified panic selling, leaving Bitcoin vulnerable until capitulation resets sentiment.

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