Bitcoin is showing early signs of recovery because it trades above key demand levels following weeks of heavy selling pressure and rising macroeconomic uncertainty. After plunging greater than 29% from its all-time high of $109,000 in January, BTC managed to bounce over 7% from its recent low of $81,000 recorded last Tuesday. This rebound has sparked cautious optimism amongst market participants, although analysts remain divided on Bitcoin’s next move.
Some consider that the recent rally could possibly be short-lived and mark the start of a protracted bear market. Others argue that Bitcoin’s long-term fundamentals remain strong and that a bullish continuation continues to be possible. One encouraging sign comes from institutional flows: for the fourth consecutive trading session, the web USD inflow into US Spot Bitcoin ETFs has remained positive.
This consistent inflow signals continued interest from institutional investors despite market turbulence. As these inflows strengthen Bitcoin’s on-chain demand, bulls could gain the momentum needed to push prices back toward critical resistance levels.
While uncertainty still hangs over the broader financial markets—driven by inflation fears, rate of interest speculation, and geopolitical tensions—Bitcoin appears to be at an important crossroads where demand from ETFs may play a decisive role in shaping its next major move.
ETF Inflows Signal Renewed Institutional Confidence Despite Market Uncertainty
Bitcoin is trading above key support levels, but bulls still have work to do to verify a full recovery. Since late January, global markets have been under pressure from growing trade war tensions and unpredictable actions by U.S. President Trump, including aggressive tariff policies and foreign policy shifts. These developments have added volatility across risk assets, from crypto to equities, and dampened hopes for a powerful bull run in 2025.
While recession fears are spreading and talk of a broader bear market continues to surface, some analysts consider Bitcoin’s long-term trend could remain intact. One encouraging sign comes from institutional demand.
Top analyst Axel Adler shared on-chain data via X, revealing that net USD inflows into U.S. Spot Bitcoin ETFs have stayed positive for the fourth consecutive trading session. The whole amount added to those ETFs during this era reached $632 million, highlighting renewed confidence from institutions.
These regular inflows, even during market uncertainty, suggest strong buying pressure at current levels. If this trend continues, it could function a foundation for a bigger price recovery. For now, Bitcoin stays in a fragile position. Bulls have to push prices above $88K and reclaim $90K to construct momentum. If ETF demand holds, this could possibly be the catalyst needed to fuel a stronger upside move.
BTC Price Hangs At Crucial Level As Bulls Eye $88K Reclaim
Bitcoin is trading around $85,500, hovering near two critical technical indicators — the 200-day moving average (MA) and exponential moving average (EMA). This zone has grow to be a key battleground between bulls and bears as BTC attempts to stabilize after weeks of downside pressure. Bulls must defend this support level with strength to forestall an extra slide into lower demand.
To substantiate a recovery rally, BTC must push above the $88,000 mark, which might not only reclaim recent losses but additionally break above short-term resistance levels and rebuild market confidence. A sustained move above this level would likely trigger renewed momentum, potentially targeting the $90K region and beyond.
Nonetheless, the chance of a breakdown stays significant. If Bitcoin fails to carry the $85,000 support and loses the 200-day MA and EMA, selling pressure could intensify rapidly. In that scenario, a drop below $80K is very probable, with potential tests of deeper support levels and growing market fear.
Within the short term, BTC’s direction hinges on reclaiming $88K and holding above $85,500. Any failure to achieve this could open the door for one more wave of downside volatility.
Featured image from Dall-E, chart from TradingView
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