The recent rally of Bitcoin to $79,000 was primarily driven by the derivatives market rather than spot demand, according to CryptoQuant contributor Carmelo Aleman.
BTC’s Rally Was a Short Squeeze
— CryptoQuant.com (@cryptoquant_com) April 24, 2026
“As long as price depends more on derivatives than on solid spot validation, the structure will remain vulnerable to reversal.” – By @oro_crypto pic.twitter.com/apoXcTXIAQ
During this price movement, Bitcoin's price rose from $76,351 to $79,447 (+4.05%). Concurrently, open interest increased from $24.88 billion to approximately $28 billion. Aleman interpreted this trend as a sign of rising leverage in the futures segment.
Short Position Liquidations
The rise of digital gold and the market overall triggered a massive closure of short positions. According to Aleman's estimates:
- Liquidations of short positions in Bitcoin amounted to about $607.9 million;
- For Ethereum, it was approximately $580.9 million.
In contrast, liquidations of long positions were significantly lower, around $111 million.
The analyst believes this confirms that the rise was driven by a short squeeze rather than sustained buying interest. Aleman argues that this structure makes the market vulnerable.
“The price increase was not due to dominant spot interest, but rather pressure in the derivatives market, indicating the fragility of the movement,” his analysis states.
As long as the rally is supported only by futures, the threat of a correction remains, the expert concluded.
Glassnode emphasized that sentiment among major players in the derivatives market remains bullish.
Whales on Hyperliquid have been longing the breakout of the range. Their conviction and long positioning have steadily increased over the past two months, signaling strong bullish sentiment among big perp players.
— glassnode (@glassnode) April 24, 2026
📊https://t.co/G1mZrpr16c pic.twitter.com/uDuKtMFdWv
“Whales on Hyperliquid have been betting on growth, anticipating a breakout of the range. Their confidence and long positions have only increased over the past two months,” experts noted.
Strong Dynamics
April could be one of Bitcoin's best months in the last year and a half. According to CoinGlass, the asset's price has risen by 14.3% over the past 24 days—the highest since November 2024.
Since early February, the first cryptocurrency has gained about $20,000, nearing the upper boundary of a multi-month range.
At the time of writing, Bitcoin is trading around $77,500.
Institutional investors are providing support. Over the past five days, spot Bitcoin ETFs have purchased approximately 19,000 BTC.
André Dragosch, head of the European division of Bitwise, noted that this volume is about nine times the new coin supply during the same period.
GM from Switzerland!
— André Dragosch, PhD⚡ (@Andre_Dragosch) April 24, 2026
US spot bitcoin ETFs have purchased 18,991 $BTC over the past 5 trading days.
*checks numbers*
That's 9 x times the new supply in that period.
Institutional demand for #bitcoin is clearly accelerating. pic.twitter.com/VtzVyjQAJu
Long-Term Signals
MN Trading founder Michaël van de Poppe highlighted the behavior of Bitcoin's Sharpe ratio, which assesses returns adjusted for risk.
#Bitcoin is a generational opportunity, right now.
— Michaël van de Poppe (@CryptoMichNL) April 23, 2026
The Bitcoin Sharpe Ratio has hit a level that's comparable to any broad market bottom.
This early in 2026.
If you flip that measure, it's actually the best time to be investing in the underlying asset, in this case #Bitcoin.… pic.twitter.com/qaYRF01K9h
He stated that the ratio is at levels previously observed near market bottoms. In past cycles, such values preceded significant growth:
- approximately 120-135% over 12 months;
- 400-800% over two years.
In this context, the analyst again suggested a potential rise to $100,000 in the third quarter of 2026, with a new all-time high in the following months.
Key Levels
Van de Poppe believes that in the short term, the upward movement could push Bitcoin to $86,000. In this case, altcoins could gain 30-40% from current levels.
Upwards moves can last longer than you generally expect.#Bitcoin collapsed from $100K+ to $60K in less than 2 months.
— Michaël van de Poppe (@CryptoMichNL) April 23, 2026
Currently, there's a slow grind higher after a V-shaped recovery in the Nasdaq.
I think this leg has enough room to continue to $86K, and #Altcoins to run… pic.twitter.com/f420cj6WGJ
He identified $75,000 as a key support level. To maintain momentum, Bitcoin must stay above this mark.
Several traders consider $80,000 a critical level. Market participant Daan Crypto Trades emphasized that bulls "need to break this level to turn the situation in their favor on higher timeframes."
$BTC has been in an uptrend during April. But it is coming up to some important high timeframe levels.
— Daan Crypto Trades (@DaanCrypto) April 23, 2026
Especially above the $80K area is where the bulls would need to push through to turn this around on the high timeframe.
On the downside, the immediate supports are around ~$72K… pic.twitter.com/vXYpUn5K8A
The nearest support levels are currently $72,000 and $65,000.
On April 24, the fear and greed index reached its highest level since January at 46.