Bitcoin News Today: Bitcoin Rebounds 2.1% as On-Chain Buying Drives $116,000 Recovery

Bitcoin staged a notable rebound over the past 24 hours, surging 2.1% to reclaim the critical $116,000 level. The move has reignited bullish sentiment, reflected in the Fear and Greed Index, which climbed to 62, signaling a return to “Greed” territory [1]. The derivatives market also appears stable, with only $262 million in liquidated positions during the rebound, suggesting the price recovery is being driven by strong on-chain demand rather than leveraged futures activity [1].

According to on-chain analytics from Glassnode, Bitcoin’s price bottomed in a low liquidity range between $116,000 and $110,000 before rebounding [1]. During the recovery, investors aggressively bought the dip, accumulating nearly 120,000 BTC. This suggests that retail and institutional participants alike are viewing the recent pullback as a buying opportunity. The data also indicates that short-term holders increased their BTC distribution during the dip, but the high conviction of long-term holders helped stabilize the market and encouraged the return of short-term buyers [1].

Market observers are drawing comparisons to historical bull cycles, particularly the “Crypto Summer” of 2017, when Bitcoin and other digital assets saw strong momentum from June through August [1]. Since April 2024, Bitcoin has recorded consistent monthly gains, with the possibility of another major rally emerging as the market approaches the peak of the current cycle. In 2017, Bitcoin posted its strongest gains in August, and the current technical setup, including the formation of a bullish continuation flag on the daily chart, points toward a potential target of $130,000 [1].

Institutional demand has also played a key role in the recent strength. U.S. spot Bitcoin ETFs have seen four consecutive weeks of cash inflows totaling over $18 billion, according to SoSoVaLue [1]. Meanwhile, Bitcoin Treasuries data shows that 289 institutions have adopted BTC treasury strategies, collectively holding over 3.65 million coins [1]. This growing institutional allocation reinforces the asset’s fundamental strength and long-term investment appeal.

The broader macroeconomic environment has also supported Bitcoin’s move higher. Discussions around the potential replacement of the U.S. Federal Reserve chair have increased expectations for a rate cut before the end of 2025, which is seen as bullish for risk assets including cryptocurrencies [1]. The BTC/USD pair must now sustain its position above $116,000 to avoid a potential pullback toward $111,000 in the coming weeks [1].

Source: [1] Bitcoin Price Rebound: On-Chain Data Shows Strong Spot Demand

https://coinedition.com/bitcoin-price-rebound-on-chain-data-spot-buy/