Bitcoin’s latest rally looks more like a classic short squeeze than a wave of new buyers, according to CryptoQuant. The analytics firm points to a Bull Score of 70 and a 24% BTC price jump, but stresses that a true, sustainable bull trend will only be confirmed if Bitcoin holds above $83,000.

What On-Chain Data Shows

The Bull Score metric is flashing stronger bullish signals, but CryptoQuant’s data suggests the main driver behind the move is forced liquidations and closing out of short positions—not a rush of new demand. That’s why the price action has been so sharp, without clear signs of long-term holders piling in.

Why the Rally Was a Short Squeeze

A short squeeze hits when traders betting against Bitcoin are forced to buy back in to cover losses, which pushes the price up even more. This kind of move can spark a rapid spike without real, fundamental demand growth—and that often leaves the market open to quick pullbacks.

The Key Level for a Bull Trend

CryptoQuant says Bitcoin needs to hold above $83,000 to confirm a full-blown bull trend. For now, the price action is being driven more by shorts getting squeezed than by steady new buying coming in.