Bitcoin is displaying price patterns reminiscent of its previous Q2 behavior, signaling a potential market recovery in the crypto space.
Following a recent dip below $109,000, Bitcoin appears to be approaching its next local support level, hinting at an impending bottom.
Strengthening this outlook, the Coinbase Premium Index has turned positive again, indicating a resurgence in US Bitcoin demand.
Further boosting confidence, ETF inflows ended Monday on a positive note, surprising markets despite the recent downward pressure on Bitcoin’s price.
After consolidating around the $110,000 mark during Tuesday’s Wall Street session, Bitcoin is showing signs of stabilizing with reduced volatility.
Recent market turbulence led to long liquidation activity exceeding $700 million over 24 hours, reflecting heightened trading volatility and market responses to price shifts.
Bitcoin’s recent low hit approximately $108,717 on the Bitstamp exchange, dipping below the early year all-time highs.
Despite concerns about a possible re-test of the $100,000 support, some traders remain optimistic about a price rebound in the near term.
Expert trader BitBull shared analysis suggesting Bitcoin is nearing a bottom, with possible minor retests in the $106K-$108K range but expects a bounce back soon.
The Coinbase Premium Index, which compares Bitcoin prices on Coinbase BTC/USD and Binance BTC/USDT pairs, turning positive, implies strengthening demand from US-based investors.
Such indicators suggest that the market has experienced maximum pain during recent liquidations and may be poised for a short-term rally.
Additional analysis highlights a growing short position above $115,000 on exchange order books, which could trigger a short squeeze boosting Bitcoin’s price.
Onchain analyst Cas Abbe noted that the current Bitcoin price behavior closely mirrors patterns seen in Q2 2025, emphasizing the uncanny similarity in lower lows and market capitulation.
Historical price fractals reveal that after reaching a peak near $112,000, Bitcoin retraced to about $98,000 in a pattern similar to what is observed today.
Institutional flows, especially in US spot Bitcoin ETFs, initially showed outflows that pressured Bitcoin lower, reflecting macroeconomic uncertainties.
However, Monday saw a surprising shift with ETFs recording nearly $220 million in positive inflows, suggesting renewed institutional investor interest.
This influx offers a hopeful outlook for Bitcoin’s price trajectory moving forward amidst the ongoing market volatility.
Investors are reminded to proceed cautiously as all trading involves risk, and thorough research is recommended before making investment decisions.
