Bitfinex Alpha #59 | Bitcoin Rebounds from Major Psychological Level but No Short Squeeze Yet?

#Bitcoin bounces back from $25,000, but no significant #shortsqueeze occurs. Analysis of the short squeeze ratio and liquidation data indicates that the 8 percent rebound was not driven by short sellers. Typically, when Bitcoin's price rises abruptly, shorts face #margincalls or #stoplosses, leading to buying pressure and a potential short squeeze. Despite the downtrend sentiment, the recent rebound from $25k did not trigger substantial short squeezes. The absolute value of short liquidations remains relatively small compared to previous #BTC movements. These findings support the theory that the upward movement is not caused by short liquidations but may be attributed to significant #longpositions in #futurescontracts. Additionally, order flow analysis reveals a substantial increase in BTC aggregated #OpenInterest by over $800 million within a short timeframe after the price dipped below $25,000. Read the [Bitfinex Alpha Issue #59](https://blog.bitfinex.com/wp-content/uploads/2023/06/Bitfinex-Alpha-59.pdf) to find out what it means for the market's outlook, and [subscribe to our weekly newsletter](https://blog.bitfinex.com/bitfinexalpha/) to stay informed.