Bitcoin Rebound Fails to Gain Traction Amid Fading Spot Demand

Bitcoin's recent price recovery has drawn attention, but analysts warn that it may be fragile. According to cryptocurrency analyst Murphy (@Murphychen888), the rebound is not supported by genuine spot demand, raising the possibility of a long squeeze that could reverse gains.

Murphy highlighted that spot trading volumes have been declining even as Bitcoin's price moved higher. This divergence between price action and volume is a classic warning sign in technical analysis. Without the backing of organic buying interest from spot markets, the current uptrend is more accurately described as a rebound rather than a confirmed trend reversal.

The analyst noted that while the price increase is encouraging, its sustainability remains uncertain. A sustained rally typically requires increasing spot volume to confirm genuine accumulation by long-term investors. The absence of this signal suggests the move may be driven by short-term speculation or derivative market activity.