Bitcoin gained 5% yesterday after testing support at $25,000. However, this breakout rally does not necessarily mean victory for the bulls. To put current price action into perspective, Bitcoin is down 15% since July.

This underperformance shows that despite major catalysts, such as MicroStrategy’s plan to acquire an additional $750 million worth of BTC and multiple requests for Bitcoin spot exchange-traded funds (ETFs) from Trillion Dollar Asset Management, Bitcoin’s Still struggling to gain momentum. Nonetheless, according to Bitcoin Derivatives, bulls are confident that $25,000 marks a bottom and opens room for further price gains.

Some believe that the main drivers of Bitcoin in 2024 are still in play, especially the prospect of spot ETFs and the reduction in new supply after the April 2024 halving. Additionally, some immediate risks to the cryptocurrency market have subsided after the U.S. Securities and Exchange Commission suffered partial losses in three separate cases involving Grayscale, Ripple, and decentralized exchange Uniswap.

On the other hand, shorts have their own set of advantages, including ongoing legal proceedings against leading exchanges like Binance and Coinbase. Additionally, the Digital Currency Group’s finances have struggled after a subsidiary declared bankruptcy in January 2023. The group has more than $3.5 billion in debt, which could lead Grayscale to sell funds it manages, including the Grayscale Bitcoin Trust.