Bitcoin's funding rates have remained negative for over three months, currently at -0.009%, indicating a potential bullish setup. This trend follows a significant price drop from $125,000 to $65,000 in February 2026. Historically, sustained negative funding rates have marked capitulation zones, often preceding major price rallies. Previous instances, such as the March 2020 COVID crash and the June 2022 Luna/3AC collapse, saw Bitcoin prices surge significantly after periods of negative funding. As Bitcoin's price recovers from $65,000 to $77,600, continued negative funding could strengthen a short squeeze scenario. However, traders are advised to exercise caution and manage risks appropriately.