David Duong, analyst at Coinbase, said: "Market conditions on Tuesday suggest a potential short squeeze amid increased buying activity on centralised exchanges. We think market panic will continue in the short term, but there is a chance that bears will be squeezed here, which could lead to a market rally in the coming days." Bitcoin futures funding rates have remained negative over the past 24 hours despite a slight recovery in prices, indicating that demand for short positions remains high and that traders are still betting on a fall in bitcoin prices.