Buying pressure, not short squeeze, behind BTC rebound, says analyst

Bitcoin's rebound to the $60,000 level was the result of renewed buying pressure, not a short squeeze, according to on-chain analyst Axel Adler Jr. In a blog post, he explained that the taker buy/sell ratio has been above one for eight of the last 10 days, and funding rates have remained positive for 10 consecutive days. While selling pressure was dominant during the recent decline, Adler noted that the ratio has averaged 1.03 since June 6, signaling a resurgence in buying strength. He argued that a typical short squeeze would involve funding rates turning negative before a rebound, but rates stayed positive this time, indicating the market was not heavily skewed toward shorts. However, Adler cautioned that the positive funding rates mean long leverage is increasing. He stated that while a moderate positive rate is acceptable, a sharp rise without corresponding demand could make the market vulnerable again. For the rebound to be sustained, he concluded, buying pressure must continue without overheating funding rates.