Bitcoin’s move above $73,000 reflects both short covering and underlying demand from spot buyers and exchange-traded funds (ETFs), according to blockchain analytics firm Nansen. Nicolai Sondergaard, a research analyst at Nansen, said the short squeeze amplified buying pressure that was already building rather than creating the rally. With most of the squeeze largely complete, the continuation of the uptrend depends on sustained spot buying. Sondergaard identified $70,000 as a critical psychological and technical support level. A move down to $69,000–$69,700 could still represent a normal retest of the breakout zone rather than a bearish reversal, while a break below $70,000 could signal further downside. The distinction between forced short covering and genuine demand is important for judging whether the advance can endure. Strong spot and ETF demand may indicate broader investor confidence and institutional adoption, whereas a rally driven mainly by speculative positioning could be more vulnerable to volatility and sharp corrections.