Bitcoin (BTC) traded 5.5% above its nine-month low of $74,500 reached on Monday amid hopes of a rebound toward $85,000.
Key takeaways:
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A “squeeze” toward $85,000 is in play as Bitcoin rebounds from multimonth lows.
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The return of spot Bitcoin ETF inflows could fuel BTC price recovery in the short term.
Can BTC price rebound toward $85,000?
Bitcoin bulls fought to secure the recent recovery to $78,000 as traders hoped that further BTC price gains would follow.
Bitcoin “created a massive CME gap this weekend,” analyst Daan Crypto Trades said in a Monday post on X.
Related: Spot crypto volumes plunge to 2024 lows amid investor demand weakens
This is the futures gap formed between Friday’s close around $84,445 and Monday’s open near $77,400.
This is the “largest gap we’ve created this cycle and definitely the biggest weekend move in many months,” Daan Crypto said, adding:
“Keep that gap close area around $84K on your charts as it could be a good level to watch if price were to cross back over $80K at some point.”
Fellow analyst Titan of Crypto said that after sweeping the previous monthly low at $84,000 and past quarterly low around $80,000, BTC price could rebound toward the first fair value gap (FVG) between $79,000 and $81,000.
Above that, the next area of interest is the second FVG between $84,000 and $88,000.
A FVG happens when the price moves very fast, leaving a gap in a three-candle pattern. The first candle’s wick and the third candle’s wick don’t overlap at all, showing an imbalance where no trading occurred.
Additionally, exchange order-book liquidity data from CoinGlass showed the price pinned below two sell-order clusters at $80,000 and just above $85,000.
“2 strong liquidity levels shining bright for $BTC,” Bitcoin analyst AlphaBTC said in his latest post on X, adding:
“Will markets get enough of a bounce at the start of Feb to take both out? IMO yes, but it may take a little time and the US passing the Crypto bill as a catalyst.”
If the $80,000 level is broken, it could spark a liquidation squeeze, forcing short sellers to close positions and driving prices toward $85,000, which is the next major liquidity cluster.
February’s first Bitcoin ETF inflows give hope
Discussing whether demand is returning at lower BTC prices, market analyst CoinBureau was optimistic.
“Bitcoin spot ETFs recorded $561.9M in net inflows yesterday, ending 4 straight days of outflows. Not a single ETF saw outflows,” the analyst said in a Tuesday post on X, adding:
“February’s first inflow day has already outpaced all of January. The bid is back.”
Institutions are “buying the fear,” said analyst Danny Scott, referring to the “extreme fear” gripping the market at the moment.
Data from market intelligence platform Santiment shows that Bitcoin’s latest rebound to $78,300 from $74,600 came after FUD (fear, uncertainty and doubt) levels reached their highest levels since November 2025.
This signals the potential for a relief rally as seen in “previous two instances following FUD,” Santiment said.
As Cointelegraph reported, the (MVRV) z-score has reached its lowest level ever recorded, signalling “fire-sale valuations for Bitcoin,” and also hinting at a potential rebound in the near term.
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