I see Bitcoin consolidated above US$ 77,000, but something strange is happening in the derivatives. Funding rates have remained negative for a few months, which means that those who are short are still paying to hold these positions while the price slowly rises. This kind of disconnect rarely lasts very long.

The setup is for a classic short squeeze. The short sellers are accumulating losses but haven't capitulated yet, and any stronger move could force them to quickly exit and buy back. There has been a lot of inflow into spot ETFs (more than US$ 800 million last week), MicroStrategy buying another US$ 2.6 billion recently, and now Charles Schwab signaling that clients can allocate up to 8.8% in Bitcoin. Bullish catalysts are arriving all at once.

What catches my attention most is that the longer this deadlock drags on, the more violent the short squeeze becomes when it finally happens. Some are betting on protection at US$ 60,000 and US$ 50,000, but if it breaks above US$ 76,000, some analysts see Bitcoin heading to US$ 85,000. The market is really tense.