BTC Squeeze Fades as Rally Hunts for Real Buyers

Bitcoin's recent surge past $72,000 has left some market analysts wondering if fresh buyers are stepping in to drive the rally or if it's still largely driven by short covering.

A record squeeze forced bearish traders out of the market on Thursday, leading to a two-day price hike. However, open interest in perpetual Bitcoin futures remains low, suggesting that new leveraged longs have yet to replace the liquidated positions.

According to Coinglass data, over $3 billion worth of leveraged crypto positions were liquidated in the past 24 hours, but the rebuild has been muted. This indicates that the current rally may be largely driven by short covering rather than a surge in new bullish positions.