Bitcoin started the week with a more positive performance after successfully recovering from selling pressure and returning to near the $63,000 level.
At the time of writing, Bitcoin price is at $63,688, down 0.04% since it opened early Monday in Asian trading.
However, this increase is not yet enough to confirm that Bitcoin has returned to an uptrend.
Analysts are looking to see if this rise is truly supported by new buying interest or just a temporary rebound after a price drop.
The most important factor being watched is the Spot Bitcoin ETF fund inflow.
ETF products allow institutional investors to buy exposure to Bitcoin through the stock market.
When ETFs receive fund inflows, it indicates stronger institutional demand and usually helps support Bitcoin prices.
Conversely, fund outflows signal weaker demand and can increase selling pressure.
According to Farside Investors data, ETF fund flows are now a key indicator of Bitcoin market direction. If the fund inflows return to stability, they can absorb the supply of Bitcoin in the market and reduce price volatility.
However, if the fund inflows continue to be weak or negative, Bitcoin is expected to remain sensitive to global economic developments, monetary policy and market sentiment.
At the same time, Bitcoin's previous weakness is not only due to technical factors, but also due to reduced interest from institutional investors and changes in capital flows to other riskier assets.
Therefore, the price increase alone is not enough without the support of ETF fund inflows.
For now, Bitcoin has managed to avoid a larger fall and has some breathing room.
However, the next few trading sessions are expected to determine whether this increase can develop into a stronger uptrend or just a temporary bounce before selling pressure returns.
