 ▲ Bitcoin (BTC) surge / AI-generated image |
Bitcoin (BTC) prices could rebound to $85,000 as “smart money” on the Chicago Mercantile Exchange (CME) significantly reduces short positions, according to recent analysis.
According to Cointelegraph on February 23, large speculative players in the CME Bitcoin futures market, including hedge funds and asset managers, have recently closed a substantial number of short positions and shifted to net long positions. Similar positioning changes previously appeared just before Bitcoin rebounded 190% in 2023 and 70% in 2025, signaling a strong bullish precursor.
Technical indicators also suggest Bitcoin may be forming a bottom. The cryptocurrency is currently finding strong support near $68,350, the weekly 200-day exponential moving average (EMA), which has historically acted as a key support level during major bear markets over the past decade. In addition, the weekly relative strength index (RSI) has retreated from overbought territory and stabilized, indicating that much of the downward pressure has eased. Analysts believe that if Bitcoin successfully rebounds from this level, it could reclaim the $85,000 mark by April.
However, market uncertainty remains. Analyst Tom McClellan cautioned that “a shift in smart money positioning creates favorable conditions for a rally, but it is not a confirmed signal.” If Bitcoin fails to defend the 200-day EMA, a repeat of the 2022 downturn pattern could push prices down to the low $40,000 range.
The latest data suggests that institutional investors are quietly shifting their stance at a time when market fear is peaking. Rather than reacting to short-term volatility, investors are closely monitoring institutional capital flows and the defense of key support levels for signs of a new rally toward $85,000.
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