Bitcoin’s recovery to $110,000 was fueled by delayed geopolitical tensions and bullish options positioning. President Trump’s decision to postpone EU tariff announcements reduced immediate macroeconomic risks, allowing risk assets to rebound. Options data shows increased call buying at the $115,000 strike price, indicating trader confidence.
The rebound was supported by record ETF inflows totaling $1.2 billion over the weekend, suggesting institutional buyers used the dip as accumulation opportunity. On-chain analytics reveal over 50,000 BTC moved from exchange wallets to cold storage during the sell-off, reducing immediate sell pressure.
Technical factors played a role, with Bitcoin finding strong support at its 50-day moving average near $105,000. The relative strength index (RSI) reset from overbought territory during the correction, creating healthier conditions for upward momentum. However, traders remain cautious about potential regulatory developments that could impact market structure.
