Bitcoin's Rebound Hits Inflection Point as Short Squeeze Momentum Peaks

Bitcoin has broken through the $72,000 level and is facing a new test as its rebound enters a critical phase.

The rapid ascent over the past two days has been driven more by mechanical buying pressure from shorts being forced to cover than by investors actively establishing new bullish positions.

According to data aggregated by crypto analytics platform Coinglass, over $3 billion in leveraged positions across the cryptocurrency market were liquidated over the past 24 hours.

This has led to a situation where perpetual futures open interest has not shown any meaningful recovery, indicating that the rally has been driven primarily by short covering rather than fresh long positioning.