Analyst: BTC in 'healthy' spot-driven rally despite short pressure

Despite aggressive short-selling in the cryptocurrency market, key indicators are signaling a healthy rally, cryptocurrency analyst Sykodelic said on X. He noted that Open Interest (OI) and leverage ratios are currently rising in tandem with the price. In particular, spot trading volume is growing alongside the price increase, underpinning the buying pressure. Conversely, funding rates are strongly negative, suggesting that a majority of traders are betting on short positions. The Coinbase Premium, which indicates U.S.-based buying pressure, is also in positive territory. Sykodelic interpreted this as a market with solid spot buying, while leveraged positions are concentrated on the short side. He predicted that if spot buying continues to push prices higher, a short squeeze could occur.