The cryptocurrency market witnessed a dramatic turnaround this Tuesday as Bitcoin (BTC) posted a daily gain of 5.81%, its most robust performance since May 8. This impulsive move, backed by a significant surge in buy-side flows, has ignited expectations of a potential Bitcoin rally to $107K in the near term. Analysts and market data suggest this rebound is not an isolated event but the beginning of a structural recovery after weeks of selling pressure.
Tuesday’s session not only brought price relief but also printed a “bullish engulfing” pattern on the daily chart. This marks the first significant structural shift observed during the fourth quarter of 2025. Following a liquidity sweep below $84,000 on Monday, the digital asset established higher lows, indicating that sellers are losing control to renewed and aggressive demand from buyers.
On the other hand, the quality of the bullish move has been validated by key on-chain metrics. Data provided by analytics firm CryptoQuant revealed that the market buy-to-sell ratio spiked to 1.17, the highest reading since the bull cycle began in January 2023. This dominance of “taker” buys suggests that investors are not waiting passively but are executing market orders to secure positions before prices rise further.
Signs of Institutional Demand and Premium Recovery
A crucial indicator supporting the bullish thesis is the return of the Coinbase Premium Index to positive territory, registering a value of +0.03. Historically, a positive premium on this US platform, compared to other global exchanges like Binance, signals renewed appetite from United States institutional investors. The price gap between major exchanges has tightened, reflecting healthier global liquidity and a more constructive market consensus.
Despite the optimism, caution remains necessary until specific technical levels are cleared. To confirm this move is a complete trend reversal and not just a relief bounce, price must close decisively above $96,000. This level is critical because it represents a break of structure (BOS) on higher time frames. Clearing this barrier would validate that the market has entered a new phase of expansion and price discovery.
Furthermore, volume analysis shows that Tuesday’s breakout was driven by real participation rather than a simple stop-loss hunt. High-volume breakouts tend to have cleaner follow-through as they reflect the conviction of directional buyers. If the $96,000 zone is reclaimed, the path would be clear toward a massive liquidity cluster located between $102,000 and $107,000, where sell orders and stops reside that could act as magnets for price action.
Is This Momentum Sustainable Without Higher Technical Confirmation?
In the immediate scenario, a short-term break of structure is forming above $92,300. Even if price retraces momentarily to fill fair value gaps (FVG) between $88,000 and $90,000, the overall trend appears to have shifted. The combination of rising volumes in spot and futures markets reinforces the idea that market participants are positioning for a strong year-end, ignoring recent bearish noise.
To conclude, Bitcoin’s market structure has improved substantially over the last 48 hours, supported by solid on-chain fundamentals and a shift in investor sentiment. While $96,000 acts as the gateway for the next bullish leg, indicators suggest the probability of a sustained recovery is high. Traders are now closely watching if institutional demand will continue flowing, driving the leading asset toward new all-time highs before 2025 ends.
