Huobi HTX Chief Analyst Cloud: Bitcoin rebound sees spot buying relay, sustainability depends on ETF inflows and leverage temperature.

September 23 — Huobi HTX chief analyst Cloud stated that Bitcoin, after bottoming under the dual pressure of interest rate hikes and obstruction of the Clarity Act, rebounded quickly, gaining about 16% in a week and rising intraday on September 21 to $87,307 (Huobi HTX spot price), a new high since January. This rally was driven by three forces: U.S. spot Bitcoin ETFs recorded about $1 billion in single-day net inflows on September 21, the largest single day of the year; about $650 million in short liquidations within 24 hours; and falling oil prices helped cool inflation expectations. Compared with last week's rebound, which was mainly driven by passive covering, this week saw spot buying take over.

Whether the market move can continue depends on two points: whether ETF inflows can shift from a single-day pulse to a sustained trend, and whether leverage can remain at a level that is not overheated. Currently, the funding rate is about 0.01%, in a neutral range, but Bitcoin contract open interest has risen back above $61 billion. Once funding weakens, high leverage will amplify drawdowns. Market sentiment has entered an extreme greed range, which historically has often been a leading signal of short-term reversals. On the technical side, $87,500 is upside resistance, while $84,000 to $85,000 is the first support zone. The trend has the conditions to continue, but the phase of hottest sentiment also carries the highest risk of short-term volatility.

Note: The content of this article is not investment advice, nor does it constitute an offer, solicitation of an offer, or recommendation for any investment product.