Bitcoin [BTC] traders are getting more bearish with each second! Interestingly, such extreme negativity has so far only come near local bottoms.<\/span><\/p>\n With fewer coins available, any change could cause a move up.<\/p>\n Bitcoin\u2019s Funding Rates now at their most negative levels since 2023, according to Glassnode\u2019s 7-day MA. At the time of writing, the metric slipped to the -0.004% to -0.005% range; this is the deepest red stretch in recent times.<\/p>\n Short positions are dominating the market, and traders are betting on a greater fall.<\/p>\n But here\u2019s where it gets interesting. Similar sentiment drops were seen around March 2020, mid-2021, and during the FTX-led collapse in late 2022; all well-known local market bottom phases.<\/p>\n There is no confirmed reversal yet, but bearish sentiment is approaching extreme levels again.<\/p>\n Meanwhile, exchange reserves have now fallen<\/a> to around 2.68 million BTC<\/a>. The decline has been steady since early 2025, when reserves were still above 3.0 million BTC. It\u2019s only sped up since.<\/p>\n Fewer coins on exchanges means fewer coins available to sell in the market. If buying demand returns while reserves remain this low, the story will flip<\/a> quickly\u2014especially with short positioning already high.<\/p>\nBitcoins BTC Funding Rates fall to long-time lows<\/h2>\n
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<\/a>Bitcoins Exchange reserves drop<\/h2>\n
<\/a>Bitcoins Price action is bullish, though<\/h2>\n<\/p><\/div>\n