The flagship cryptocurrency has been forming a cautious rebound after sliding to a nine-month low near $74,500 earlier in the week, trading roughly 5% higher as buyers test the fence at the $78,000 region with eyes on the potential climb toward the $85,000 zone. Market participants are weighing a mix of technical signals, liquidity dynamics and shifting institutional sentiment as they map a path back toward resistance levels that traders have kept in focus for months. While the bounce is notable, analysts warn that its durability will hinge on how quickly it can absorb renewed selling pressure and whether spot ETF demand can sustain gains beyond the immediate technical setup.

Key takeaways

A squeeze toward $85,000 is in play as the flagship cryptocurrency rebounds from multimonth lows.
The return of spot BTC ETF inflows could fuel a price recovery in the near term.
Technical gaps and fair-value gaps point to specific price zones that could guide the next move.
Liquidity at key levels around $80,000 and $85,000 underpins potential short-squeeze dynamics if breached.
Positive shifts in ETF demand and on-chain sentiment suggest a potential relief rally, contingent on macro and regulatory developments.

Tickers mentioned: $BTC

Sentiment: Bullish

Price impact: Positive. A renewed ETF inflow cycle and improving liquidity near key levels support a near-term bounce.

Trading idea (Not Financial Advice): Hold.

Market context: Renewed spot ETF inflows are emerging as a potential catalyst amid a broader re-entry of institutional capital into crypto assets, even as liquidity remains a defining factor for near-term moves.

Why it matters

The current price action sits at a crossroads where microstructure signals and macro-driven sentiment collide. The recent rebound from a nine-month trough around $74,500 has renewed interest in whether the market can press into the $80,000–$85,000 corridor. If institutional buyers gain traction through regulated vehicles, the reacceleration could attract short-term momentum traders and institutional allocators alike who had scaled back exposure during the prior downturn. The prospect of a sustained move higher is not guaranteed, but the combination of improved on-chain signals and renewed ETF inflows—if it persists—could shift the narrative away from capitulatory fears toward a gradual restoration of demand.

Analysts emphasize that the near-term price path is heavily influenced by a handful of price gaps and liquidity concentrations that tend to act as magnets or pressure points. The weekend’s price action left a substantial futures gap on the CME, the most sizable seen in months, with Friday’s close near $84,445 and Monday’s open around $77,400. Such gaps often attract price reversion as traders seek to “close” the imbalance, potentially guiding the market back toward the mid-$80,000s if buyers step in decisively. This dynamic is not just a technical curiosity; it has real implications for risk management, margin calls, and the timing of new long positions as leverage and liquidity ebb and flow.

Beyond the gap, the concept of fair-value gaps (FVGs) in the order book has drawn attention. After the market cleared the monthly low around $84k and surpassed the quarterly low near $80k, traders pointed to the FVG zones between $79k and $81k and a subsequent one between $84k and $88k as meaningful targets for the next leg. A pronounced move through these zones could signal a fresh round of liquidity reallocation, particularly if price action collects above the $80k threshold and drives momentum toward the higher FVG cluster. Titan of Crypto, another widely cited analyst, has underscored that the $84k–$88k area may become a focal point for a broader liquidity contest if buying pressure intensifies.

BTC/USD daily chart. Source: Titan of Crypto

Order-book data from CoinGlass reinforces the view that liquidity sits at two critical junctures: around $80,000 and near $85,000. Those clusters form the backdrop for potential liquidation squeezes if bears push price through key supports, or for rapid upside if bulls sustain pressure and forced liquidations on the short side accelerate the move. A breach below $80,000 could unleash a cascade of liquidations that propels prices toward the next major liquidity node, while a sustained breakout beyond $85,000 would reinforce the idea that buyers are reasserting control after weeks of volatility.

“2 strong liquidity levels shining bright for BTC,”

Analysts have noted that these liquidity levels could be decisive in the near term. The sense here is that a bounce early in February could clear both clusters, but doing so may require a renewed catalyst—potentially a policy signal or a tangible shift in the macro backdrop. As the market contends with evolving regulatory expectations, the path of least resistance for the price could hinge on whether buyers manage to reassert demand quickly enough to overcome the friction created by the existing gaps and order-flow imbalances.

Bitcoin liquidation heatmap. Source: CoinGlass

On the demand side, February’s early influxes into spot BTC exchange-traded vehicles have raised hopes that institutions are re-engaging with the asset class. A market observer noted that Bitcoin spot ETFs registered around $561.9 million in net inflows on the most recent day, ending a sequence of four straight days of outflows and outperforming January in terms of fresh buying pressure. The shift has led some to suggest that a broader bid could be building, even as broader sentiment remains constrained by macro uncertainty and regulatory scrutiny. The data imply that institutional players are no longer refraining from risk, but rather recalibrating their exposure as the market environment evolves.

On-chain sentiment metrics add another layer to the narrative. After a pullback in late February, sentiment indicators showed improvement as fear and uncertainty cooled from recent peaks. Analysts note that such shifts often precede price relief rallies when macro conditions allow, pointing to a possible early-stage recovery that could extend beyond mere oscillation around the current levels. As this unfolds, market participants will be watching closely whether the rebound translates into a more durable uptrend or remains a relief rally within a larger bear market context.

What to watch next

Watch for continued ETF inflows in February and any regulatory developments that could catalyze or hinder demand.
Monitor the CME gap at ~$84k and the $80k support zone for signs of a squeeze or retracement.
Track FVG targets in the $79k–$81k and $84k–$88k ranges as potential magnets for price action.
Observe liquidity depth around key clusters to assess the risk of rapid moves or short-covering rallies.
Stay tuned for macro-driven catalysts, including any crypto-focused regulatory decisions in the US that could influence investor appetite.

Sources & verification

Market commentary and CME gap context from the referenced X post by Daan Crypto Trades: https://x.com/DaanCrypto/status/2018244192275763427
Spot Bitcoin ETF inflows data and discussion from Coin Bureau: https://x.com/coinbureau/status/2018554254177554679
Spot ETF inflows table and related data image source: https://s3.cointelegraph.com/uploads/2026-02/019c22d8-99ce-725e-a2c5-37197d6c2a9d.png
Liquidity heatmap data from CoinGlass: https://www.coinglass.com/pro/futures/LiquidationHeatMap
BTC price and ETF-related analysis pieces cited: https://cointelegraph.com/news/bitcoin-cme-gaps-how-to-trade-them

Market reaction and key details

Bitcoin (CRYPTO: BTC) has moved into a cautious rebound after slipping to a nine-month low near $74,500 earlier this week, trading roughly 5% higher as buyers test the fence at the $78,000 region with eyes on the potential climb toward the $85,000 zone. Market participants are weighing a mix of technical signals, liquidity dynamics and shifting institutional sentiment as they map a path back toward resistance levels that traders have kept in focus for months. While the bounce is notable, analysts warn that its durability will hinge on how quickly it can absorb renewed selling pressure and whether spot ETF demand can sustain gains beyond the immediate technical setup.

The price action is shaped by a lattice of structural features that traders watch closely. A weekend CME gap sits in the foreground, with Friday’s close near $84,445 and Monday’s open near $77,400 creating a disproportionate distance between the last traded price and the latest settlement. The gap’s size and location have drawn attention because such imbalances often invite a reversion, especially when market depth is thin enough for large players to influence the pace of moves. As noted by observers, the gap stands as the largest seen in this cycle, suggesting traders will be vigilant for a test of the $80k barrier and, potentially, a re-acceleration toward higher zones if buyers prevail.

Beyond the gap, a broader narrative centers on fair-value gaps in the order book. After the price cleared key levels, market participants highlighted a potential first FVG in the $79k–$81k corridor, with a secondary target in the $84k–$88k range. The idea is that such gaps can act as magnets or resistance points depending on the balance of supply and demand. Titan of Crypto has flagged the $84k–$88k area as a critical liquidity node; a continued bid into that region could foreshadow a more extended up-leg, while a failure to sustain momentum might see price drift back toward established supports.

BTC/USD one-hour chart. Source: Daan Crypto Trades

Liquidity data from CoinGlass show two prominent clusters around $80,000 and $85,000, a fact that underscores the potential for micro-panic moves if price tests or crosses these thresholds. A break below $80,000 could trigger a squeeze as leveraged positions unwind, potentially pushing price toward the next liquidity pocket near $85,000. Conversely, a decisive move through the higher cluster could attract momentum buyers and propel the asset toward new intraday highs. The balance of power at these levels will define the near-term trajectory, especially if macro catalysts or regulatory news tilt sentiment decisively in one direction or another.

On the demand side, February’s early influx into regulated BTC exposure has contributed to a more constructive tone. A market observer noted that spot ETF inflows reached approximately $561.9 million on the latest data point, ending a stretch of outflows and signaling a possible shift in institutional appetite. The development aligns with broader narratives about increased access to regulated vehicles as a way for investors to gain exposure to the crypto market without relying on less regulated on-chain mechanisms. While inflows alone are not a guarantee of sustained upside, they do provide a creditable counterpoint to the fear that dominated sentiment earlier in the year.

Sentiment metrics from on-chain analytics providers add another layer of context. After a period of heightened fear, uncertainty and doubt, recent readings show a retreat from the most extreme levels, coinciding with a modest price rally that has brought BTC back toward the mid-$70k to low-$80k zone. While this does not guarantee a continued rebound, it does suggest that market psychology may be firming for a transitional phase rather than a lasting top or bottom. Taken together with ETF inflows and liquidity dynamics, the current snapshot paints a picture of a market that could experience a relief rally if observers continue to see improving demand signals while liquidity remains supportive.

The connective thread through all these observations is the sense that the near term could be influenced more by liquidity and investor sentiment than by any single macro event. If the regulatory environment in the United States remains constructive or if crypto-related legislation proceeds with clear guidance, this could act as a catalyst to sustain buyers beyond the immediate bounce. Conversely, any sudden tightening in financial conditions or a shift in regulatory posture could quickly reverse the nascent improvement, highlighting the delicate balance traders face as they navigate what could become a pivotal period for the asset class.

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This article was originally published as Bitcoin Traders Bet on Rebound as BTC Targets $85K Liquidity Grab on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

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Filed under: News - @ February 3, 2026 11:28 am