#BTCReboundto$96,000

The emotional celebration of Bitcoin’s rebound towards $96,000 is misguided. This movement isn't driven by optimism but by market structure.

Firstly, liquidity behavior points to a calculated rebound, not random optimism. After the recent pullback, downside liquidity was efficiently managed while spot bids remained stable, revealing that larger participants were absorbing rather than exiting. This mechanical rebound occurs when sell pressure fails to amplify following a drawdown.

Secondly, derivatives positioning plays a significant role. Funding rates have normalized as open interest remains elevated, indicating leverage reduction rather than increased enthusiasm. Markets ascend when forced positioning diminishes and imbalances persist, not when traders are overly confident.

Thirdly, there is a divergence between spot buying and leverage dynamics. Persistent spot buying leads price movement, whereas perpetual-driven price spikes fall short of sustainable growth. This highlights that genuine rebounds stem from spot demand rather than leveraged momentum.

Given this structure, $96,000 serves as a liquidity target rather than a price prediction, drawing prices to areas where positioning intersects with gamma exposure and order density. While this doesn’t guarantee a further upside, it signifies robustness in the face of typically restraining conditions—a crucial distinction.

More insights into these structures, invalidation levels, and risk zones will be detailed in my upcoming Gate live session.