Bitcoin’s move above $73,000 has been supported by both short covering and underlying spot and exchange-traded fund (ETF) demand, according to Nansen research analyst Nicolai Sondergaard. A short squeeze, in which rising prices force bearish traders to repurchase Bitcoin, amplified the rally but did not create it. Nansen data indicates that spot buying has strengthened and ETF demand has contributed significantly, suggesting firmer support than a rally driven solely by forced buying. With most of the squeeze largely complete, Sondergaard said the uptrend depends on continued spot demand. He identified $70,000 as a critical support level: holding above it could preserve positive momentum, while a decline to $69,000–$69,700 could represent a normal retest of the breakout zone rather than a bearish reversal. ETF demand, which gives institutional and retail investors exposure through regulated funds, may provide sustained buying pressure and could signal broader confidence in Bitcoin as an asset class. A break below $70,000 could increase downside risk, while continued support above that level may encourage further gains.