Analyst: Bitcoin's modest rebound driven by short liquidations, sustainability remains to be seen

BlockBeats news, September 18: Analyst Axel Adler Jr. pointed out that in the past 24 hours, Bitcoin rose from $76,300 to $77,400, and the market balance of buying and selling power has shifted to buyers. Short positions accounted for the vast majority of liquidations, and traders who predicted a decline were forced to close their positions, which instead supported the upward price movement. The liquidation pressure oscillator rose from +0.48 a day earlier to +54.52 on September 18, and has remained positive since the morning of September 17, indicating that the current short-covering-driven pattern is still continuing.

The analyst also noted the fragility of this advantage: if the liquidation pressure oscillator falls back to zero, the liquidation balance will shift back to longs, and forced liquidation of bullish positions will create selling pressure and exacerbate the downside. This rebound is clearly driven by a short squeeze, and the buying advantage has only been established in the past few hours. Whether it can translate into a more sustained upward move depends on whether the liquidation structure can remain in a range favorable to longs.