Nansen Analyst Questions Strength of Bitcoin Recovery

While daily and weekly trends indicate Bitcoin has moved past its most recent lows, the asset continues to trade below its seven-day average. Nansen reports that labeled entities transferred a net 3,700 BTC to exchanges over the past week, a move often preceding sell-side pressure. This coincides with a $236 million outflow from US-listed spot ETFs, reversing the institutional momentum that propelled Bitcoin toward $80,000 in August.

Market participants remain split, with large whales on Hyperliquid maintaining significant short exposure even as aggregate open interest declines. According to Søndergaard, the market is currently reliant on potential short-covering rather than consistent spot demand. To validate a durable recovery, Bitcoin must reclaim the $77,400–$77,650 range and sustain it through increased spot volume. Failure to stabilize above this level, particularly if exchange inflows remain elevated, could leave the price vulnerable to further corrections driven by leverage imbalances.