BTC Eyes $85,000 Liquidity Grabbed Bitcoin Traders Returned in Price
Bitcoin (BTC) was trading 5.5% off a nine-month low of $74,500 hit on Monday on hopes of a return to $85,000.
Main Receptors:
A “squeeze” toward $85,000 is in play as Bitcoin rebounds from multi-month lows.
The return of the position of Bitcoin ETF earnings could fuel the recovery of the price of BTC in the short term.
Can BTC price return to $85,000?
Bitcoin bulls fought to hold on to the recent rally to $78,000 as traders hope that more BTC price gains will follow.
Bitcoin has “created a huge CME gap this weekend,” analyst Daan CryptoTrades said in a Monday post on X.
Related: Spot crypto volumes fall to 2024 lows as investor interest weakens
This is the futures gap created between Friday's open near $84,445 and Monday's open near $77,400.
This is “the biggest gap we've had this cycle and certainly the biggest weekend activity in months,” Dan Krypto said.
“Keep that gap around $84K on your chart as that would be a good level to watch if the price crosses over $80K.”
After clearing the previous monthly low of $84,000 and the quarterly low of $80,000, BTC price may return to the initial fair value gap (FVG) between $79,000 and $81,000, according to the titan of crypto analysis.
Beyond that, the next area of interest is the second FVG between $84,000 and $88,000.
FVG occurs when the price moves too fast, leaving a gap in the three candlestick pattern. The first candle wick and the third candle wick show a mismatch where no trade has occurred.
Additionally, the exchange's order-book liquidity data from CoinGlass showed that the price was pegged below two sets of sell orders at $80,000 and above $85,000.
Bitcoin analyst AlphaBTC said in a recent post on X that “2 strong levels of liquidity are shining brightly on $BTC.”
Will the markets get enough momentum in early February to pull out both? IMO yes, but it may take some time and the US to pass the Crypto bill as an incentive.
If the $80,000 level is broken, it could create a liquidity squeeze, forcing short sellers to close positions and drive prices towards $85,000, which is the next major liquidity cluster.
February's first Bitcoin ETF earnings offer hope
Discussing whether demand is returning with low BTC prices, market analyst CoinBureau was optimistic.
“Bitcoin spot ETFs recorded net inflows of $561.9M yesterday, ending a streak of 4 straight days. Not a single ETF saw inflows,” the analyst said in a note posted on X on Tuesday.
“February's first earnings date has already outsold all of January. Bidding is back.”
Analyst Danny Scott said institutions are “buying into fear” citing “extreme fear” in the market at the moment.
Bitcoin's recent rebound to $78,300 from $74,600 came after FUD (Fear, Uncertainty and Doubt) levels reached their highest level since November 2025, according to data from market intelligence platform Santiment.
This “suggests the possibility of a relief rally as seen in the two cases following FUD,” Santiment said.
As Cointelegraph reports, the (MVRV) z-score has hit an all-time low, signaling a “fire sale for Bitcoin” and hinting at a potential rebound in the near future.
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