According to CoinDesk: Bitcoin (BTC) witnessed a significant short squeeze during the Asian trading hours on Tuesday, with its price surging back to almost $26,000. This move effectively countered the decline to three-month lows below $25,000 experienced on Monday. Described as a rally powered by an unwinding of bearish derivative bets, the short squeeze saw the cumulative open interest in futures and perpetual swaps trading on Binance, Bybit, OKX, and Deribit drop from $5.05 billion to $4.8 billion. This indicates that shorts were likely abandoning their bearish positions, as funding rates turned positive concurrently.
Despite the recent recovery, some observers maintain a bearish outlook for Bitcoin, as prices remain below the 50-day simple moving average. The optimism surrounding the Bitcoin spot ETF seems to have waned, with market participants now focusing on the impending liquidation of FTX's altcoin holdings. According to crypto services provider Matrixport's Markus Thielen, this downward trend highlights a bearish sentiment.
