Analysts: BTC rebound is just a dead cat bounce

Bitcoin's rebound after a sharp drop last weekend is likely a technical bounce driven by short covering rather than a genuine recovery, according to some analysts. Decrypt reported that BTC has risen 12% from $62,822 to its current price of $70,846. Ryan Yoon, a senior analyst at Tiger Research, told Decrypt that the rally is likely a technical rebound centered on short covering. Similarly, Andri Pauzan Azima, head of research at crypto exchange Bitrue, said the rebound is characteristic of short covering and a short squeeze following a sell-off. He noted that while long positions were cleared out as open interest fell and the spot cumulative volume delta (CVD) improved, the rally is more akin to a dead cat bounce after large-scale liquidations and panic. Azima added that with the Coinbase Premium still negative and macroeconomic uncertainty persisting, it is difficult to say a sustainable demand base has been established.