BTC rebound is technical, not demand-driven, says Bitfinex

Bitfinex has analyzed that Bitcoin's recent rebound, prompted by easing tensions in the Middle East, may be a technical bounce resulting from the exhaustion of selling pressure rather than an influx of new demand. In a recent report, the exchange noted that open interest (OI) in the futures market has significantly decreased from its May high, and short-term holders have sold their positions at a loss. This suggests the market has entered a phase of deleveraging and absorbing supply. However, Bitfinex pointed to weak demand, citing continued exchange-traded fund (ETF) outflows and slowing corporate buying, according to on-chain and fund flow data. The report also highlighted that short-term holders are still facing unrealized losses of 17% to 19%, which could form a substantial potential sell wall. Consequently, BTC is currently trapped in a range between its support level at $54,000 and a resistance level of $68,000, where short-term holders may look to sell at their break-even point. Bitfinex concluded that while the selling has paused, buying remains unconfirmed. The exchange added that a reopening of the Strait of Hormuz, which would alleviate energy supply shocks, could lower inflation and real interest rate pressures, potentially acting as a tailwind for risk assets like cryptocurrencies.