Bitcoin bounced from $62,920 to $69,000 within a day, putting institutional demand and ETF flows back at the center of the market narrative. Macroeconomist Henrik Zeberg said Bitcoin could rise toward the $110,000 to $120,000 range in March if the current setup stays intact. His base case depends on three factors holding together: stronger risk appetite, continued inflows into Bitcoin ETFs, and ongoing institutional adoption.
Institutional activity and ETF demand remain the main drivers
Zeberg pointed to improving risk sentiment across broader financial markets and rising demand for Bitcoin exchange-traded funds as the key forces behind the recent recovery. The report also noted that major financial firms such as Morgan Stanley are taking concrete steps, including applying for national wallet licenses to hold crypto assets for clients. As large funds continue buying, supply pressure on exchanges is said to be easing.
Analysts at Bernstein shared a constructive view as well. They described the recent downturn as the softest scenario for crypto skeptics and argued that growing acceptance from the banking sector, along with supportive US government policies, is helping sustain long-term bullish expectations for digital assets.
Short squeeze and RSI shift changed the tone
Last week’s drop to $62,920 intensified selling pressure, but the rebound to $69,000 in a single day forced short sellers to close positions quickly. That move produced a notable short squeeze. Price action like this can signal that the market is starting to build support after a fast decline.
Technical readings also shifted. The Relative Strength Index, or RSI, fell from overbought territory to a more neutral 41. That suggests sentiment has cooled and leaves room for buyers to step back in, rather than showing the kind of overheated conditions seen earlier.
Extreme fear dominates while $72,000 and $60,000 define the range
CoinMarketCap data shows the Market Fear & Greed Index at Extreme Fear. Selling still dominates the mood, yet that same backdrop may be seen by institutional players as an opportunity to enter at lower levels. The article added that, historically, long stretches of sideways or declining action in crypto have often been followed by strong rallies.
For now, Bitcoin is trading inside a critical range. Resistance stands at $72,000, and a break above that level could signal the end of the current correction. Support sits at $60,000; if that floor gives way, market vulnerability could increase. The report also said that future regulatory developments, continued ETF inflows, and the clearing out of leveraged positions could all help set up a stronger upside move in the months ahead.