Bitcoin Double Bottom Forms at $89K — Short-Term Bounce Incoming?

Bitcoin's chart just flashed a classic reversal signal—and traders are scrambling to position.

The Pattern Everyone's Watching

A double bottom near $89,000 isn't just technical noise. It's the kind of setup that screams 'accumulation zone' to seasoned chartists. When a price level holds firm twice, it often means sellers are exhausted and buyers are stepping in.

What a Bounce Could Look Like

If this pattern confirms, the path of least resistance shifts upward. The immediate target becomes the neckline of the formation. A clean break there could see momentum pick up fast—short squeezes have a way of accelerating moves that leave traditional finance's 'orderly markets' in the dust.

The Bigger Picture

This isn't happening in a vacuum. Macro conditions, regulatory whispers, and institutional flows all feed into the momentum. A short-term bounce here could reignite the narrative that crypto's volatility is a feature, not a bug—offering returns that make your average savings account look like a financial crime. After all, what's Wall Street's 7% annual return when Bitcoin can do that before lunch?

The next few candles will tell the tale. Either the double bottom holds and fuels the next leg up, or it fails and becomes another entry in the long list of 'almost' moments. One thing's for sure: in crypto, the charts don't lie—but they love to tease.

Crypto ETP Inflows Reach $2.2B, Bitcoin Takes 71% Share

Institutional positioning remains a key stabilizing factor. CoinShares data shows $2.17 billion in net crypto ETP inflows last week, the strongest weekly intake of 2026 so far and the largest since October.

Bitcoin absorbed $1.55 billion, or roughly 71% of total inflows, reinforcing its role as the primary institutional exposure during periods of uncertainty. Ethereum followed with $496 million, while XRP and Solana attracted $70 million and $46 million, respectively.

JUST IN: Crypto ETPs saw $2.17 BILLION in inflows last week, the strongest week of 2026 so far.

Largest weekly inflow since October. pic.twitter.com/SquBIo5erj

Assets under management across crypto funds have now surpassed $193 billion, the highest level since November. BlackRock led issuers with $1.3 billion in inflows, highlighting continued demand from large allocators even as spot prices soften.

Notably, most inflows occurred earlier in the week. Sentiment weakened into Friday as tariff headlines and geopolitical risks resurfaced, but weekly flows remained firmly positive.

Futures Open Interest Rebuilds Without Excess Leverage

Derivatives data supports the idea of a measured reset rather than renewed speculation. Bitcoin futures open interest has increased about 13% since January 1, rising from $54 billion to over $61 billion, with a brief peak near $66 billion, according to Coinglass.

LATEST:Bitcoin futures open interest has jumped 13% in January after three months of sharp deleveraging, signaling a gradual return of risk appetite among traders, according to Coinglass data. pic.twitter.com/in1goGn0eW

This follows a sharp 17.5% OI contraction between October and December, when bitcoin corrected roughly 36%. Importantly, leverage remains well below late-2025 levels, reducing liquidation risk.

Another constructive signal is that Bitcoin options open interest now exceeds futures OI, pointing to more structured hedging and positioning rather than directional leverage. This setup increases the likelihood that price dips are absorbed instead of amplified.

Dollar Weakness, Trade Risk, and Bitcoin’s Hedge Role

Macro pressure remains a near-term headwind. The US dollar slipped after President Donald TRUMP signaled potential 10% tariffs starting February 1 on goods from Germany, France, the UK, and Nordic countries. The move triggered risk-off flows into traditional havens, lifting the euro, pound, and Swiss franc.

Asian stocks plunge as US tariff threats linked to European nations over Greenland rattle markets, sending the dollar lower against the safe-haven yen and Swiss franc. Here’s morepic.twitter.com/yC8fIskS3Y

Persistent trade friction and policy uncertainty continue to support Bitcoin’s longer-term hedge narrative, especially as institutional exposure grows through regulated products.

Bitcoin Price Prediction: What Is Happening to Bitcoin Right Now?

Bitcoin price prediction is strongly bearish as BTC broke below a well-defined uptrend earlier this week, slipping under $93,000, a level that had supported price through most of January. That breakdown accelerated selling, pushed BTC into oversold territory, and triggered long liquidations across futures markets.

Price action NEAR $89,000, however, looks different. Instead of aggressive follow-through, recent candles show smaller bodies and longer lower wicks, signaling that sell pressure is being absorbed. This points to selective selling rather than panic, with dip buyers stepping in around key support.

Momentum indicators support this pause. The RSI is deeply oversold, a condition that often precedes short-term relief moves when it aligns with major horizontal levels.

Why $89K Matters

The $89,000 zone is now the pivot. Holding above it keeps the potential double bottom intact and limits immediate downside risk.

If support holds, upside tests may target:

• $91,000, first resistance
• $92,500–$93,000, where broken structure converges

A clean break below $89,000 WOULD invalidate the setup and expose $87,500, then $85,500.

Bitcoin (BTC/USD) Price Outlook

Bitcoin is pausing, not collapsing. If higher lows FORM above $89K, this pullback may act as a reset rather than a deeper correction. Short term, $89K defines the next move.

Bitcoin Hyper: The Next Evolution of BTC on Solana?

Bitcoin Hyper ($HYPER) is bringing a new phase to the Bitcoin ecosystem. While BTC remains the gold standard for security, Bitcoin Hyper adds what it always lacked: Solana-level speed. The result: lightning-fast, low-cost smart contracts, decentralized apps, and even meme coin creation, all secured by Bitcoin.

Audited by Consult, the project emphasizes trust and scalability as adoption builds. And momentum is already strong. The presale has surpassed $30.8 million, with tokens priced at just $0.013605 before the next increase.

As Bitcoin activity climbs and demand for efficient BTC-based apps rises, Bitcoin Hyper stands out as the bridge uniting two of crypto’s biggest ecosystems. If Bitcoin built the foundation, Bitcoin Hyper could make it fast, flexible, and fun again.