Bitcoin Rally Shows Signs of Stronger Support

Bitcoin's price has risen to $77,535 after a 23% increase over the past week, according to Bitfinex analysts. The rally is attributed to spot buying and ETF inflows rather than a typical short squeeze.

The analysts point out that open interest increased by only about 4% during the breakout, while Bitcoin's price rose by 10%-11%. This suggests that spot purchases and returning institutional demand are supporting the price after much of the short pressure cleared.

Bitfinex identified $68,000-$69,000 as the main support zone for the recovery, with the cryptocurrency's short-term holder cost basis currently sitting within this range. If Bitcoin holds above this level, it could limit pressure from holders seeking to exit at break-even.