Bitcoin slipped toward $85,000 on Tuesday after briefly breaking above $87,000, with trading volume and open interest still weak. Corporate buying and short covering have driven much of the recovery from last week's low near $75,000, but analysts flag $85,000 as the first real test of whether it holds.
Bitcoin (BTC) slipped toward $85,000 on Tuesday after briefly climbing above $87,000, putting its latest recovery under pressure. The move came after a sharp rebound from last week's low near $75,000, when BTC fell below its September trading range.
That recovery followed a period of weakness. According to the latest Bitfinex Alpha report, Bitcoin had spent much of September trading roughly between $77,100 and $81,300 before breaking lower. The market then reversed sharply, with Bitcoin gaining 5.9% on September 18 as strong buying and ETF inflows pushed prices higher.
Spot buying supports the rebound
The rebound carried BTC above its previous range and brought $85,000 into focus as an important level. Bitfinex analysts had identified that price as the first major test for the recovery. Bitcoin later moved toward $87,000 before giving back some of its gains.
Spot buying drove much of the move, but several indicators linked to sustained rallies remain weak. Trading volume has yet to show strong follow-through, while open interest remains relatively subdued. Short covering also contributed to the rally, as traders who had bet on lower prices bought Bitcoin back. Such buying can accelerate a recovery, but its effect may fade if fresh demand does not continue.
Corporate buying adds to the recovery
Corporate Bitcoin holdings are also drawing attention as the price moves above the estimated average purchase cost of about $80,500. Recent disclosures from Strategy and Strive showed additional Bitcoin purchases, suggesting corporate demand could become more active after slowing earlier this year.
Beyond corporate buying, investors are watching whether broader demand can support the recovery. Coin-denominated open interest remains subdued, while short-term holder exchange transfers stay below roughly 20,000 BTC daily. A sustained level below that threshold could point to lower selling pressure.
Source: CryptoPotato
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