The latest rise in bitcoin and Ethereum was not just a technical rebound. According to CryptoQuant, the market was driven not by liquidations of short positions, but by the opening of new long bets in perpetual futures.
This is an important distinction. When growth is built on a short squeeze, the momentum often fades quickly. When new longs enter the market, the structure looks more stable and indicates a more deliberate bet on the continuation of the movement.
Truce Becomes Trigger for Rapid Reversal
After the announcement of a two-week truce between the US and Iran, the market sharply changed direction. In one day, bitcoin added about 4%, and Ethereum grew by about 6%.
For both assets, this was the strongest one-day move in more than a month. At the same time, the market began to emerge from its previous bearish phase, where participants were more concerned about protection from declines than about new growth.
The speed of the reaction itself shows how sensitive the crypto market remains to external factors. But the main thing happened after the first impulse.
Derivatives Showed Inflow of New Bets
According to CryptoQuant, within 24 hours after the news, open interest in bitcoin perpetual futures grew by about $2.1 billion, and for Ethereum by $2.2 billion.
This is a large move. And it shows that the market did not just close old positions, but began to form new ones.
It is especially important that growth was observed simultaneously in both major assets. Such a picture usually indicates not random local volatility, but a broader shift in market sentiment.
This Was Not a Typical Short Squeeze
CryptoQuant specifically emphasizes a key point. The growth of open interest in coin-margined contracts rules out a scenario in which short liquidations were the main driver.
Simply put, the market was not just squeezing out sellers. Traders were actually opening new long positions.
This is exactly what makes the current rally more meaningful. If the impulse is built on new longs, it means participants are consciously betting on continued improvement in the market environment, at least in the short term.
Buyers Began to Dominate in Futures
Additional confirmation came from the taker buy-sell ratio. This indicator for both bitcoin and Ethereum rose above 1.
This means that aggressive market buys began to outweigh sales. For the futures market, this is a direct signal of strengthening demand.
Here, not only the indicator itself is important, but also the overall context. When open interest rises and the buying imbalance increases at the same time, the market does not look like a place for chaotic moves, but as a space where participants begin to take directional positions.
American Demand Also Began to Return
Amid the rally, the indicator of demand from the US also improved. The Coinbase Premium Index returned to positive territory for both bitcoin and Ethereum after several weeks of weakness.
This is an important signal, because this indicator is often used as a benchmark for assessing the activity of American participants. If the premium stays above zero, it means local demand is supporting the price, not dragging it down.
For the market, this adds weight to the current move. It is no longer just about derivatives, but also about demand on the spot side.
Bitcoin Breaks Above Key Level
From a technical perspective, bitcoin also achieved an important milestone. The price rose above about $69,400, which CryptoQuant calls the lower realized price of traders.
This range had acted as resistance for several weeks. Now the market has broken through it, and this changes the structure of the movement.
If bitcoin holds above this zone, the next target could be around $79,000. This is the level analysts see as the next important goal and a serious obstacle for a larger recovery.
Why This Matters for the Whole Market
This picture changes the perception of the recent rally. When the market rises only because of a short squeeze, it often means a brief spike without a solid base. But when the move is supported by new longs, rising open interest, increased buying, and the return of US demand, the structure looks stronger.
This does not mean the market has already entered a full new phase. But it means participants have begun to reset expectations and lay the groundwork for a more positive scenario, at least for the coming weeks.
This is exactly what makes the current rally more interesting than a typical technical rebound.
Ethereum May Even Look Stronger
On the Ethereum side, the signal looks especially notable. The rise in open interest was even slightly higher than for bitcoin, and the price reaction was also stronger.
This may mean that part of the market is ready to be more active through ETH as a more sentiment-sensitive asset. In periods when the market emerges from a tense phase, Ethereum often reacts faster than bitcoin.
Therefore, the current structure for ETH deserves no less attention than the move in BTC itself.
What’s Next?
The key question now is whether the external background will hold. If the truce remains and no new reasons for escalation appear, the market will have a chance to consolidate the current improvement in sentiment.
In this case, the positive premium on Coinbase may persist, and new long positions may continue to support the price. But if the geopolitical background worsens again, some of these bets will quickly come under pressure. The market has already shown that it reacts sharply to such events.
For now, the picture is this: the BTC and ETH rally is supported not by a random squeeze, but by new longs, and this makes the latest move noticeably more serious than a typical short-term spike.
Read More: Lummis Urges Senate on CLARITY Act. Window for Crypto Reforms Is Narrowing
