Analyst: BTC rebound near institutional cost basis acts as key support

An analysis suggests that Bitcoin's rebound near the average entry price of institutional investors established after the approval of spot ETFs is now acting as a key support level. In a contribution to CryptoQuant, on-chain analyst CryptoDan noted that the current cycle is structurally different from previous ones. While some indicators suggest it is too early to declare a market bottom, he argued that the large-scale inflow of institutional funds via spot ETFs is a new variable not seen in past cycles. Consequently, CryptoDan believes the current downtrend may unfold differently, and investors should position themselves accordingly. He advised closely watching the depth and scale of the correction or pullback that may follow the current rebound. A strategy of buying in installments during significant corrections could prove effective, he added.