On Monday, Bitcoin’s 5% move actually comes from a reason that’s quite different from new buying. From the perspective of a market analyst, we can see that short position closures outweigh everything else behind this rise. In other words, as sellers pull back, it wasn’t new money inflowing that pushed the price higher, but rather actions to close out existing risk.

When tracking such moves, it’s also important to carefully examine technical indicators such as register. Because making a decision by looking only at price action can be misleading. Closing short positions can kick off a rally, but this may not indicate a change in the long-term trend. Understanding these differences in the market and catching the right timing is critical.