The latest surge in bitcoin to $79,000 was driven primarily by derivatives rather than spot demand, according to CryptoQuant contributor Carmelo Aleman.
BTC’s Rally Was a Short Squeeze
“As long as price depends more on derivatives than on solid spot validation, the structure will remain vulnerable to reversal.” – By @oro_crypto pic.twitter.com/apoXcTXIAQ
— CryptoQuant.com (@cryptoquant_com) April 24, 2026
During the move, bitcoin rose from $76,351 to $79,447 (+4.05%). At the same time, open interest climbed from $24.88bn to roughly $28bn — a sign, he said, of rising leverage in futures.
Short liquidations
The upswing in bitcoin and the broader market triggered extensive covering of shorts. By Aleman’s estimate:
- liquidations of bitcoin shorts totalled about $607.9m;
- for Ethereum — roughly $580.9m.
By comparison, long liquidations were far lower — about $111m in total.
In the analyst’s view, that confirms the rise was driven by a short squeeze, not by durable spot demand. Aleman argues that such a set-up leaves the market vulnerable.
“The price rose not because of dominant spot interest, but due to pressure in the derivatives market, which may indicate the fragility of the move,” his analysis suggests.
As long as the rally is sustained only by futures, the risk of a correction persists, he concluded.
Glassnode stressed that sentiment among large players in the derivatives market remains bullish.
Whales on Hyperliquid have been longing the breakout of the range. Their conviction and long positioning have steadily increased over the past two months, signaling strong bullish sentiment among big perp players.
📊https://t.co/G1mZrpr16c pic.twitter.com/uDuKtMFdWv
— glassnode (@glassnode) April 24, 2026
“Whales on Hyperliquid have been betting on upside, anticipating a range breakout. For two months their conviction and long positioning have only increased,” the experts noted.
Strong momentum
April could be one of bitcoin’s best months in the past 18 months. According to CoinGlass, over the last 24 days the asset has risen 14.3% — the strongest since November 2024.
Since early February, the cryptocurrency has added about $20,000 and approached the top of its months-long range.
At the time of writing, bitcoin is trading around $77,500.
Institutional investors are providing support. Over the past five days, spot bitcoin ETF bought roughly 19,000 BTC.
André Dragosch, head of Bitwise’s European unit, noted that this volume is about nine times the new supply of coins over the same period.
GM from Switzerland!
US spot bitcoin ETFs have purchased 18,991 $BTC over the past 5 trading days.
*checks numbers*
That’s 9 x times the new supply in that period.
Institutional demand for #bitcoin is clearly accelerating. pic.twitter.com/VtzVyjQAJu
— André Dragosch, PhD⚡ (@Andre_Dragosch) April 24, 2026
Long-term signals
MN Trading founder Michaël van de Poppe highlighted bitcoin’s Sharpe ratio, which gauges return adjusted for risk.
#Bitcoin is a generational opportunity, right now.
The Bitcoin Sharpe Ratio has hit a level that’s comparable to any broad market bottom.
This early in 2026.
If you flip that measure, it’s actually the best time to be investing in the underlying asset, in this case #Bitcoin.… pic.twitter.com/qaYRF01K9h
— Michaël van de Poppe (@CryptoMichNL) April 23, 2026
He said the metric is at levels previously seen near market bottoms. In past cycles, such readings preceded gains:
- of roughly 120–135% after 12 months;
- of 400–800% after two years.
Against this backdrop, the analyst again suggested reaching $100,000 in the third quarter of 2026 and setting a new all-time high in the following months.
Key levels
In the near term, van de Poppe thinks the advance could carry bitcoin to $86,000. In that case, altcoins could rise 30–40% from current levels.
Upwards moves can last longer than you generally expect.#Bitcoin collapsed from $100K+ to $60K in less than 2 months.
Currently, there’s a slow grind higher after a V-shaped recovery in the Nasdaq.
I think this leg has enough room to continue to $86K, and #Altcoins to run… pic.twitter.com/f420cj6WGJ
— Michaël van de Poppe (@CryptoMichNL) April 23, 2026
He cites $75,000 as key support. To maintain momentum, bitcoin needs to hold above that mark.
Some traders view $80,000 as a critical level. A market participant known as Daan Crypto Trades stressed that bulls “need to push through it to turn this around in their favour on the higher timeframes”.
$BTC Has been in an up trend during April. But it is coming up to some important high timeframe levels.
Especially above the $80K area is where the bulls would need to push through to turn this around on the high timeframe.
ON the downside, the immediate supports are that ~$72K… pic.twitter.com/vXYpUn5K8A
— Daan Crypto Trades (@DaanCrypto) April 23, 2026
Immediate support levels now sit at $72,000 and $65,000.
On April 24, the Fear and Greed Index reached its highest level since January at 46.