Market just broke out of a narrow consolidation range, with Bitcoin soaring to $93,000. In just a few days, it has risen 6%, and many are already calling for the start of a new rally. But is this surge really that reliable?

Let's first review the previous rhythm. Bitcoin hovered for several weeks, oscillating within a fixed range, and many couldn't hold on and ended up selling at a loss. Later, geopolitical tensions suddenly escalated, attracting a large influx of capital into global risk assets, and Bitcoin was pushed higher accordingly. But here’s a key question—what is driving this price increase?

Upon closer inspection, this rise isn't driven by improved fundamentals. The truth is even more painful: a large number of short positions were forced to close.

What is a short squeeze? Simply put, traders betting against Bitcoin expected it to fall, but the price instead surged sharply, causing them to suffer heavy losses and rush to buy to cut losses. These buy-in pressures further pushed up the price, creating a self-reinforcing cycle. Data shows that over $250 million worth of short positions were liquidated in the past 24 hours—meaning the market severely punished the bears, pushing the price higher against their expectations.

So the key question is: can this squeeze-driven rally continue? Or is it just a flash in the pan? It all depends on the true intentions of the capital involved.