- Six of seven recent Binance sessions show funding near -0.004%, indicating persistent short positioning.
- Darkfost links the bias to the October 10 liquidation, with traders avoiding renewed long exposure.
- Liquidity clusters at $113K and $126K pose squeeze risk if price moves against concentrated short positions.
Negative funding activity on Binance has persisted despite Bitcoin attempting to stabilize after its recent retracement. Analyst Darkfost noted that six of the past seven sessions recorded funding near -0.004 percent, indicating continued preference for short positioning.
He linked the change to the October 10 liquidation event, which wiped out leveraged long positions and weakened trader conviction. The reaction has sustained a bearish bias even as price action shows attempts to recover lost ground.
Derivatives Sentiment and Recent Liquidations
The October 10 event is a key reference for current positioning. Darkfost explained that traders who absorbed losses during the wipeout remain hesitant to rotate back to longs. Instead, many have extended bearish exposure, anticipating additional pullbacks rather than momentum continuation. This bias has carried into funding data, where negative readings reflect traders paying to maintain short futures.
However, the analyst pointed out that extended disbelief phases have previously preceded strong directional moves. He linked similar setups to recoveries seen in September 2024 and April 2025. In those examples, rapid rebounds followed deep corrections as short positions were forced to close.
Short Exposure Could Amplify Bullish Reversal
Short positioning has concentrated near liquidity clusters that are above current trading levels. Darkfost noted two primary targets: the $113,000 area and the $126,000 region. Both zones host significant levels of short liquidation risk if upward pressure accelerates. He added that disbelief intensifies when traders expect further downside while price action changes in the opposite direction.
In previous cycles, unwinding bearish leverage during comparable phases led to short squeezes that extended upside moves beyond initial resistance. Notably, he referenced the rebound from $54,000 to over $100,000 in late 2024, which unfolded after heavy short activity failed to catch a deeper drop.
Funding and Price Behavior
Chart data covering early 2023 through late 2025 shows Bitcoin’s broader trend holding despite episodic reversals. The asset climbed from roughly $16,000 to over $100,000 before easing toward the mid-$90,000 range. Funding rates have been between roughly -0.04 and 0.08 during that span, with higher spikes often aligning with overheated markets and subsequent reversals.
Signal indicators marked clusters near major peaks in late 2024 and mid-2025, while quieter periods aligned with earlier breakouts. Recent stabilization near neutral level suggests less speculative pressure even as short leanings persist. According to Darkfost, disbelief phases typically resolve when positioning changes from price direction long enough to lead to forced exits.
