Key signals emerge after a sharp drop! American buyers begin to buy the dip in Bitcoin
Bitcoin has violently rebounded from a low of $60,000 to nearly $70,000, alleviating market concerns about liquidity exhaustion. Demand indicators in the U.S. are warming up, releasing important signals for bottom fishing.
As a barometer for institutional funding, the Coinbase Bitcoin premium index has significantly narrowed from a sell-off low of -0.22% to -0.05%. The rapid convergence of negative values indicates the end of forced liquidations, and American investors are starting to accumulate at low levels. This is the first clear signal of capital inflow since the fastest drop after FTX in 2022.
The current premium has not turned positive, indicating that funds are primarily focused on selective bottom fishing, rather than a full return of risk appetite. Kaiko data shows that total market trading volume remains below previous highs, and spot trading is cautious. In a low liquidity environment, exhaustion of selling pressure can easily trigger a rapid rebound, but a lack of sustained buying can also lead to secondary volatility risks.
In the short term, BTC has rebounded over 15%, but it is still down more than 10% this week, and the oscillating pattern remains unchanged. The re-entry of American funds is an important stabilization signal. Whether the premium can turn from negative to positive will be key to judging whether institutions continue to increase their positions.
Do you think this is the starting point of a rebound, or a trap for more buying?
