Bitcoin traded 5.5% above its nine-month low of $74,500 reached on Monday amid hopes of a rebound toward $85,000.
Key takeaways:
- A potential “squeeze” toward $85,000 is emerging as Bitcoin rebounds from multi-month lows, with traders eyeing a short-term recovery.
- The return of spot Bitcoin ETF inflows could act as a key catalyst, helping to fuel a near-term rebound in BTC prices.
Can Bitcoin rebound toward $85,000?
Bitcoin bulls have been defending the recent recovery to around $78,000, as traders hope for further gains in BTC’s price.
“This weekend, Bitcoin created a massive CME gap,” analyst Daan Crypto Trades noted in a Monday post on X. The gap formed between Friday’s close near $84,445 and Monday’s open around $77,400.
“This is the largest gap of this cycle and certainly the biggest weekend move we’ve seen in months,” Daan Crypto added.
“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 noted that after sweeping the previous monthly low of $84,000 and the quarterly low near $80,000, Bitcoin could rebound toward the first fair value gap (FVG) between $79,000 and $81,000.
Beyond that, the next key zone is the second FVG, ranging from $84,000 to $88,000.
A fair value gap (FVG) occurs when price moves sharply, leaving a gap across a three-candle pattern. In this pattern, the wicks of the first and third candles do not overlap, indicating an imbalance where no trading took place.
Additionally, exchange order-book liquidity data from CoinGlass showed Bitcoin trading below two major sell-order clusters—one at $80,000 and another just above $85,000.
“Two strong liquidity levels shining bright for $BTC,” noted Bitcoin analyst AlphaBTC 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 breached, it could trigger a liquidation squeeze, forcing short sellers to close positions and potentially driving Bitcoin toward $85,000, the next major liquidity cluster.
February’s first Bitcoin ETF inflows offer optimism
On the question of whether demand is returning at lower BTC prices, market analyst CoinBureau expressed a positive outlook.
“Bitcoin spot ETFs recorded $561.9 million in net inflows yesterday, ending four consecutive days of outflows. Not a single ETF saw outflows,” the analyst noted in a Tuesday post on X, adding:
“February’s first inflow day has already outpaced all of January. The bid is back.”
Institutions are reportedly “buying the fear,” according to analyst Danny Scott, referencing the current extreme fear gripping the market.
Data from market intelligence platform Santiment shows that Bitcoin’s recent rebound from $74,600 to $78,300 occurred after FUD (fear, uncertainty, and doubt) levels hit their highest point since November 2025.
This pattern, Santiment noted, suggests the potential for a relief rally, similar to the two previous instances following elevated FUD levels.
As previously reported, the Bitcoin MVRV z-score has dropped to its lowest level on record, indicating “fire-sale valuations” for BTC and suggesting the possibility of a near-term rebound.
