Analyst: Market still wary of bull run despite BTC recovery

Although Bitcoin has reclaimed the $70,000 level, the market remains unconvinced that a full-fledged bull run is underway, according to crypto analyst Darkfost. He explained that many investors are hesitant to confirm a bull cycle because geopolitical and macroeconomic risks continue to weigh on the market, making it difficult for risk assets to sustain a strong upward trend. Darkfost highlighted a pattern seen since the beginning of the month where market participants have used each Bitcoin rebound as an opportunity to open short positions. As evidence, he pointed to the funding rate on Binance, which has been negative for about a week. He added that historically, when funding rates reach extreme levels or market sentiment is heavily skewed in one direction, it is often too late to take a position in that same direction. If Bitcoin's rebound continues, Darkfost believes there is a high probability of a short squeeze, as the accumulated short positions could face a wave of liquidations.