BTC rebound triggers $96M short squeeze, but mid-term trend remains bearish

A rebound in BTC early today triggered a short squeeze of around $96 million, with approximately $92 million of that total consisting of short positions, Cointelegraph reported. The outlet suggested the rebound was likely driven by buying pressure from the short squeeze targeting bearish positions. However, despite the recent price increase, key on-chain indicators remain negative. The seven-day exponential moving average of Bitcoin's Spent Output Profit Ratio (SOPR) has fallen to 0.96, its lowest level since November 2022, indicating that market confidence is still fragile. For a sustained uptrend to continue, the analysis concluded that there needs to be capital inflow from whale addresses and a recovery of the Short-Term Holder (STH) SOPR to above one. The STH SOPR metric indicates profit-taking when above one and loss realization when below it. A stable reading above one can be interpreted as a signal of recovering bullish momentum.