#BuyTheDipOrWaitNow? A short selling wave can create sharp and rapid upward movements. When traders who have borrowed to bet on falling prices rush to close their positions, they have to buy back the asset, which fuels the movement. This dynamic can, at least in the short term, push prices to levels higher than what fundamental indicators can explain.

“This is not a sign of a return to $100,000 and the very important resistance level of 75,000,” said cautious Connors. In his view, the rally does not yet indicate a decisive break from the broader downtrend. Fundamental resistance levels are still above, and without continuous spot demand, the rebound can stop as quickly as it started.