Huobi HTX Chief Analyst Cloud: Bitcoin’s rebound has seen spot buying stepping in, with its sustainability hinging on ETF inflows and leverage levels.

Huobi HTX Chief Analyst Cloud noted that Bitcoin bottomed out amid dual pressures of interest rate hikes and stalled legislative clarity, then rebounded rapidly, gaining roughly 16% in a week. On September 21, its intraday price rose to $87,307 (Huobi HTX spot price), marking a new high since January. This rally was driven by three factors: U.S. spot Bitcoin ETFs recorded a single-day net inflow of about $1 billion on September 21, the largest such daily inflow this year; short positions worth around $650 million were liquidated within 24 hours; and falling oil prices cooled inflation expectations. Unlike last week’s rebound dominated by passive covering, this week saw spot buying take the lead. Whether the rally can sustain depends on two points: whether ETF inflows can shift from a one-day pulse to a continuous trend, and whether leverage can remain at a non-overheated level. Currently, the funding rate is around 0.01%, sitting in the neutral range, but Bitcoin’s derivatives open interest has rebounded to over $61 billion. If market sentiment weakens, high leverage will amplify drawdowns. Market sentiment has entered the extreme greed zone, a historical precursor to short-term trend reversals. On the technical front, $87,500 is the immediate resistance level, while the first support zone ranges from $84,000 to $85,000. The trend has conditions to continue, but the phase of peak sentiment also brings the highest short-term volatility risk. Note: The content of this article is not investment advice, nor does it constitute an offer, solicitation, or recommendation for any investment product.