Analysis: "BTC's Rebound Is Just a Dead Cat Bounce"

Bitcoin has rebounded after last weekend's plunge, but analysts say it's more of a technical rally driven by short-covering. According to Decrypt, BTC is currently trading at $70,846, up 12% from $62,822. In an interview with Decrypt, Tiger Research senior analyst Ryan Yoon stated, "This rebound is likely a technical rally driven by short-covering (the act of buying back cryptocurrency to repay short positions)." Andriy Paujan Ajiima, head of research at cryptocurrency exchange Bitrue, said, "This rebound is strongly characterized by short covering and a short squeeze following a sell-off. Long positions were liquidated due to a decrease in open interest, and the spot cumulative volume delta (CVD) rebounded. While the Coinbase premium also improved, this rebound is more like a dead cat bounce following a large-scale liquidation and panic. The Coinbase premium remains negative, and with macroeconomic uncertainty remaining, it is difficult to say that a sustainable demand base has been formed."