Bitcoin Approaches Local Bottom
- Bitcoin is “getting closer” to its next local bottom after dropping below the $109,000 threshold.
- ETF flows ended positively on Monday in an unexpected comeback, despite the downturn in BTC prices.
At the start of Wall Street trading on Tuesday, Bitcoin (BTC) stabilized around $110,000, signaling potential recovery within the crypto market.
Datas from TradingView indicated that BTC price volatility has decreased following a new round of losses.
During this period, there was a significant wave of long liquidations in the crypto market, totaling over $700 million in the last 24 hours, according to CoinGlass data.
On Bitstamp, BTC/USD reached a low of $108,717, dipping below the previous all-time highs observed earlier in the year.
Despite concerns about a possible retest of the $100,000 support level or worse, some traders expressed cautious optimism.
“BTC is now getting closer to the bottom,” shared popular trader BitBull in his latest analysis on X.
BitBull highlighted positive indicators from the U.S., where the Coinbase Premium Index returned to positive territory on Tuesday.
This Index tracks the price difference between Bitcoin on Coinbase (BTC/USD) and Binance (BTC/USDT). When the index is in the green, it suggests increasing market demand in the U.S.
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“Coinbase Bitcoin Premium turned positive during bottom and long liquidations were huge. This shows that max. pain is here and a short rally is expected,” BitBull concluded.
Other traders also anticipated a rebound, with fellow trader Mister Crypto predicting a short squeeze due to a substantial buildup of short positions above $115,000 on exchange order books.
In a separate analysis, Cas Abbe, a contributor at the on-chain analytics platform CryptoQuant, noted that the present price movements are reminiscent of previous trends.
According to Abbe, Bitcoin’s behavior during a retracement in June, where BTC/USD hit all-time highs of $112,000 before dropping to approximately $98,000, mirrors current circumstances.
“BTC chart resemblance to Q2 2025 fractal is uncanny. Similar lower-lows and a capitulation which forced everything to think ‘it’s over,’” he commented on that day.
In line with prior price declines, institutional flows contributed to negative sentiment, with analytics platform Ecoinometrics noting the impact of U.S. spot Bitcoin exchange-traded funds (ETFs).
“The macro uncertainty of the past few weeks is showing up directly in the flows,” the report concluded, indicating that ETF outflows were “pulling Bitcoin lower.”
However, on Monday, the ETFs managed to record positive flows of just under $220 million, according to data from the UK-based investment firm Farside Investors.
This article does not offer investment advice or recommendations. Every trading and investment decision involves risk, and readers should do their own research before making any financial commitments.
