Crypto analyst Ardi highlights a critical divergence in Bitcoin’s market behavior: price has risen while open interest declined, indicating the rally stems from short covering, not new buying pressure. Over the past six weeks, BTC climbed from $60,000 to nearly $75,000 as traders closed bearish positions, creating upward momentum without real demand.
This dynamic lacks the foundation of a true bullish reversal, where rising open interest and long positions signal capital inflow. Ardi warns short covering has a ceiling-once exhausted, upward pressure vanishes.
Analyst Colin adds that Bitcoin remains in a bear flag pattern since February 6, suggesting a breakdown is inevitable. He projects $80,000 as the likely maximum before decline, contingent on geopolitical stability like a U.S.-Iran de-escalation. Currently, BTC trades around $70,700.
