Bitcoin Shows Early Signs of Recovery as It Trades Above Key Demand Levels

Bitcoin is showing early signs of recovery as it trades above key demand levels following weeks of heavy selling pressure and rising macroeconomic uncertainty.

Bitcoin (BTC) showed early signs of recovery as it traded above key demand levels following weeks of heavy selling pressure and rising macroeconomic uncertainty. After plunging more than 29% from its all-time high (ATH) of $109,000 in January, BTC managed to bounce over 7% from its recent low of $81,000 recorded last Tuesday.

This rebound sparked cautious optimism among market participants, although analysts remained divided on Bitcoin’s next move. Some opined that the recent rally could be short-lived and mark the beginning of a prolonged bear market. Others argued that Bitcoin’s long-term fundamentals remained strong and that a bullish continuation was still possible.

One encouraging sign during this period came from institutional flows. For the fourth consecutive trading session, net USD inflows into U.S. Spot Bitcoin ETFs remained positive, according to top analyst Axel Adler, who shared the on-chain data via X.

The total amount added to these ETFs during this period reached $632 million, highlighting continued interest from institutional investors despite market turbulence. As these inflows strengthened Bitcoin’s on-chain demand, bulls could gain the momentum needed to push prices toward critical resistance levels.

While uncertainty still hung over the broader financial markets—driven by inflation fears, interest rate speculation, and geopolitical tensions—Bitcoin appeared to be at a crucial crossroads where demand from ETFs may play a decisive role in shaping its next major move.

Bitcoin price analysis: Bulls need to defend $85.5K as more technical support is lost

Bitcoin is now trading above key support levels, but bulls still have work to do to confirm a full recovery. Since late January, global markets have been pressured by 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 strong bull run in 2025.

While recession fears are spreading and talk of a broader bear market continues to surface, some analysts believe 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 total amount added to these ETFs during this period reached $632 million, highlighting renewed confidence from institutions.

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 towards critical resistance levels.

However, the broader financial markets remain in uncharted territory, with persistent inflation fears, interest rate speculation, and geopolitical tensions keeping traders on edge. This macro environment will likely influence how Bitcoin performs in the coming days and weeks.

As Bitcoin price approaches a crucial crossroads, demand from ETFs may play a decisive role in shaping its next major move.