Bitcoin's explosive rebound last week could prove more than just a short-lived relief rally, according to analysts. The flagship cryptocurrency soared about 22% last week, the biggest three-day gain since 2023 and leaving bitcoin above its 200-day moving average (most recently, $69,050). A macro-driven shift in markets that drove investors back to crypto and other alternative assets, plus a massive short squeeze, accelerated the move. Spot bitcoin ETFs attracted roughly $1.6 billion in new cash last week, a sign the rally wasn't only fueled by forced buying. Bitcoin entered last week after a long downturn, with investors lacking a catalyst to revive risk appetite beyond the long-awaited CLARITY Act (seemingly a dead end in 2026 when the legislation stalled in the Senate before the August recess) — leaving the crypto market susceptible to a sharp reversal. Needham analyst John Todaro wrote in a report Monday that the rebound "has legs," pointing to a cooling in AI stocks and commodities. With the speculative appetite in those markets fading, crypto may look "comparatively exciting" to retail investors again, he said. Much of the selling pressure is now behind bitcoin — with digital asset treasury firms and miners having collectively sold about $4.2 billion in bitcoin in the first half of 2026, more "than in any other comparable period," Todaro said. Needham's proprietary crypto sentiment gauge sank to its lowest level since 2022. The combination of heavy selling and depressed sentiment could mean the weak hands have been flushed out, leaving the market in a stronger position to see fresh buying. `Further gains' Others agree the crypto rebound has staying power. Some see brighter technical signals as a source of optimism. Jordi Visser of 22V Research said bitcoin's 22% weekly gain was extraordinary relative to its typical volatility. "Bitcoin just delivered the kind of week that should make an investor stop and ask a different question," Visser said in a note. "It rose roughly 22% against a one-sigma weekly move near 3%, about a seven-sigma move and broke above its 200-day moving average in the same week. That combination has appeared only twice in the last decade. Both prior episodes led to substantial further gains." BTIG's Jonathan Krinsky said bitcoin went through a similar three-day advance of more than 20% in 2023, breaking a downtrend. Eventually, it "rolled back over and found support back at its 200 DMA. Could history repeat?"