Bitcoin has gained nearly 14% over the past week, according to Vikram Subburaj, CEO of Giottus.
He said the recovery was being driven by a return of institutional demand, with US spot Bitcoin ETFs attracting nearly $2 billion over four trading sessions through September 22.
Riya Sehgal, Research Analyst at Delta Exchange, said the rally had also been supported by short covering and a more favourable risk backdrop, including softer oil prices and some easing in Treasury yields.
ETF demand and short covering
US spot Bitcoin ETFs recorded about $999 million in net inflows on September 21, their strongest single-day inflow since October 2025, Sehgal said. Ethereum ETFs also saw strong inflows during the session.
Derivatives positioning added to the momentum, with more than $1 billion worth of crypto positions liquidated, including a large share of short positions, according to Sehgal.
Such liquidations can add buying pressure when prices move higher and short sellers are forced to close positions.
Prateek Gupta, Head of Business at Mudrex, said Bitcoin had also moved above its 365-day moving average, while on-chain data showed relatively limited profit-taking despite the size of the recent move.
Balaji Srihari, VP-Business, India at CoinSwitch, said strong institutional demand and short liquidations had accelerated Bitcoin’s move higher. He added that improving macro conditions, including softer oil prices and increased US Treasury buybacks, had supported risk appetite, while the sustainability of ETF inflows would be key for the next leg of the move.
Broader crypto market also gains
The recovery has extended beyond Bitcoin.
Subburaj said XRP, Solana and Ethereum had also posted gains over the past week, indicating that the improvement in sentiment was not limited to Bitcoin.
Nischal Shetty, Founder of WazirX, said Bitcoin’s open interest had risen only modestly alongside the price recovery, suggesting that the move had not been accompanied by a significant buildup of fresh leverage. He noted, however, that open interest in XRP had increased more sharply.
What to watch next
Sehgal identified the $87,000-$87,500 area as the immediate resistance zone for Bitcoin, while $84,000-$85,000 remains an important support region.
Subburaj said investors should be mindful of the sharp rise in prices and the possibility of volatility around upcoming US inflation and employment data.
For Ethereum, the key near-term resistance area is around $2,775-$2,825, according to Sehgal.
Market sentiment has also moved into the Greed zone, according to the Fear and Greed Index cited by Shetty.