Key points:
Bitcoin is “closing in” on its next local bottom after dipping below the $109,000 threshold.
A positive Coinbase Premium returns, sparking hopes for a recovery in US demand.
ETF flows ended on Monday positively in an unexpected rebound despite the downturn in BTC price.
Bitcoin (BTC) stabilized around $110,000 as Wall Street opened on Tuesday, showing signs of a crypto market recovery.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Coinbase Premium rebounds after $700 million liquidation
Data from Cointelegraph Markets Pro and TradingView indicated that BTC price volatility has subsided following a new round of losses.
This resulted in a wave of crypto long liquidations exceeding $700 million within the 24 hours leading up to this report, according to data from CoinGlass.
Crypto total liquidations (screenshot). Source: CoinGlass
BTC/USD hit a low of $108,717 on Bitstamp, under the previous all-time highs observed at the beginning of the year.
With concerns of a potential $100,000 support retest or worse, some market players remained hopeful.
“BTC is now getting closer to the bottom,” popular trader BitBull noted in part of his latest analysis on X. “While there’s still a chance for a retest at $106K-$108K, I’m anticipating a bounceback.”BTC/USDT one-day chart. Source: BitBull/X
BitBull highlighted positive indicators from the US, noting that the Coinbase Premium Index shifted back into positive territory on Tuesday.
This index measures the price difference in BTC between Coinbase BTC/USD and Binance BTC/USDT, with a positive reading indicating strengthening demand in the US market.
“Coinbase Bitcoin Premium turned positive during bottom and long liquidations were massive. This suggests that maximum pain is present and a short rally is on the horizon,” BitBull concluded.
Bitcoin Coinbase Premium Index. Source: CryptoQuant
Others also predicted a rebound, with fellow trader Mister Crypto forecasting a short squeeze next due to significant short positioning building above $115,000 on exchange order books.
Analyst: Bitcoin displays “uncanny” Q2 repetition
In another analysis, Cas Abbe, a contributor at the onchain analytics platform CryptoQuant, proposed that the current price movement feels all too familiar.
Related: Bitcoin falls below $109K: What’s the potential for BTC price?
He pointed out that Bitcoin had exhibited similar behavior during a retracement in June, when BTC/USD peaked at all-time highs of $112,000 before plunging to around $98,000.
“The resemblance of the BTC chart to the Q2 2025 fractal is uncanny. It showcases similar lower-lows and a capitulation phase that led many to believe ‘it’s over,’” he observed on the day.
A chart accompanying this statement highlighted the parallels.
BTC/USD one-day chart. Source: Cas Abbe/X
Similar to past price downturns, institutional flows contributed to negative sentiment, with analytics platform Ecoinometrics drawing attention to the US spot Bitcoin exchange-traded funds (ETFs).
“The macro uncertainty experienced over the recent weeks is clearly reflected in the flows,” it concluded, indicating that ETF outflows were “pulling Bitcoin lower.”
Nevertheless, on Monday, the ETFs managed to achieve positive flows of nearly $220 million, according to data from UK-based investment firm Farside Investors.
US spot Bitcoin ETF netflows (screenshot). Source: Farside Investors
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
