Bitcoin finally broke above $80,000 on Monday, May 4, after weeks trading below that level. The top cryptocurrency touched as high as $82,000 over the past week before settling around $80,132. The move comes with a rare signal from the derivatives market: funding rates have turned deeply negative, a setup that historically preceded sharp upward moves.
Funding rates hit levels not seen since 2020
Bitcoin's funding rates on Binance — tracked as a 50-day simple moving average — dropped to -0.002 this week. That's the most negative reading since the post-COVID crash in April 2020. Negative funding means short traders are paying long traders to keep their positions open, a clear sign of bearish sentiment and aggressive short-selling across the largest crypto exchange.
What the data tells us
When the derivatives market skews this heavily toward shorts, it often sets the stage for a short squeeze. Historically, Bitcoin has seen further upside after periods when shorts dominated. Analyst CryptoOnchain said the $80,000 region could be the start of the next upward phase. It's not a guarantee, but the pattern is worth watching — especially with price holding above that round number.
Price action this week
As of writing, Bitcoin is at $80,132, essentially flat over the past 24 hours but up more than 2% over the past seven days. The question now is whether the bearish positioning will fuel another squeeze higher, or if $80,000 turns into resistance. So far, it's acting as support.
