Bitcoin is bouncing hard as of 25 Feb 2026 and this move is not random.
After sweeping major liquidity in the $63K–$62K zone, BTC has reclaimed $64,800+ and is showing strong short-term momentum. Let’s break down what’s really driving today’s pump.
1. Liquidity Sweep at $63K–$62K
The recent drop into $63K–$62K wasn’t just a correction, it was a liquidity grab.
What happened:
- Equal lows formed around $63K
- Retail longs placed stop losses below support
- BTC wicked into $62K region
- Stops got triggered
- Smart money absorbed the liquidity
Once that sell-side liquidity was taken, price reversed aggressively.
This is classic market structure behavior:
Sweep liquidity → reclaim level → squeeze upward.
Now BTC is trading back above $64,800, showing that the breakdown was likely a deviation rather than continuation.
2. Spot Bitcoin ETF Inflows Turning Positive Again
One of the biggest structural drivers behind Bitcoin strength remains institutional demand through U.S. spot ETFs.
Recently:
- Net inflows resumed after a few outflow sessions
- Large asset managers continue accumulating
- Daily inflow figures have been stabilizing instead of bleeding
When ETFs buy:
- They must acquire real BTC from the market
- This reduces circulating supply
- Selling pressure weakens over time
Strong ETF inflows + liquidity sweep = high probability reversal setup.
Institutional demand quietly absorbs panic selling.
3. Short Futures Getting Liquidated
This move also has characteristics of a short squeeze.
During the breakdown:
- Funding rates flipped slightly negative
- Open interest stayed elevated
- Traders aggressively shorted the breakdown
When price reclaimed $64K:
- Shorts got trapped
- Liquidations started triggering
- Market buys forced price higher
Each liquidation fuels additional upside momentum.
This creates a chain reaction:
Short entries → Price reclaims level → Shorts forced to buy back → Price accelerates upward.
4. Derivatives Data Supports the Move
Key derivative signals during the bounce:
- Open interest declining while price rises → shorts closing
- Funding stabilizing
- Liquidation clusters cleared below $63K
- Reduced downside liquidation pressure
When OI drops on a pump, it usually means positions are getting closed, not new longs opening recklessly. That’s healthier than a pure leverage-driven rally.
5. Market Structure Shift (1H Perspective)
On the 1-hour timeframe:
- Higher low formed after sweep
- Strong impulsive bullish candle from lows
- Reclaim of prior intraday support
- Currently consolidating above reclaimed range
If BTC holds above $64,500–$64,800:
Next liquidity targets sit near:
- $66K
- $67.7K
- And potentially the psychological $70K region
Failure to hold above $64K would invalidate the immediate bullish momentum.
6. Macro Sentiment Stabilizing
Beyond technicals:
- Equity markets showing stability
- Risk appetite improving
- No major macro shock in the past 24 hours
- Dollar strength cooling slightly
Bitcoin thrives when macro fear cools and liquidity conditions stabilize.
So Why Is Bitcoin Pumping?
It’s a combination of:
- Liquidity sweep at $63K–$62K
- ETF inflows absorbing supply
- Short futures getting squeezed
- Clean market structure reclaim
- Reduced downside liquidity pressure
This isn’t random volatility.
It’s structured price behavior.
What Happens Next?
Two scenarios for Bitcoin:
Bullish Continuation
- Holds above $64.5K
- Breaks $66K
- Targets $67.7K – $70K liquidity
Fakeout Scenario
- Loses $64K again
- Fails to build higher lows
- Revisits $62K region
For now, momentum favors bulls but confirmation comes from holding reclaimed levels.
If you’re tracking this for your long-term strategy or DCA framework, remember:
Short-term volatility creates opportunity.
Liquidity events often mark local bottoms.
The market just grabbed liquidity.
Now it’s deciding whether this is a relief rally or the next leg up.
Read also:
Top 10 Best Strategies to Follow for the Bear Market 2026
Is Crypto Being Manipulated? Jane Street UST LUNA Lawsuit Reveals
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