Bitcoin is showing signs of recovery after a key market indicator turned positive for the first time in 40 days. The Coinbase Premium Index, which reflects demand from US buyers, flipped positive on February 25. This shift has sparked fresh optimism among traders after weeks of falling prices.
Bitcoin was trading at around $65,907 at the time of writing. The price rose by 3.4% in the past 24 hours after dropping to $62,900 earlier this week. Buyers stepped in at lower levels, helping the cryptocurrency bounce back.
The Coinbase Premium Index measures the difference between Bitcoin’s price on Coinbase and other global exchanges. When the index turns positive, it means Bitcoin is trading slightly higher on Coinbase. This often signals strong demand from US investors, who are seen as major drivers of market trends.
This change comes even as US spot Bitcoin exchange-traded funds (ETFs) saw heavy outflows. Around $3.8 billion left these funds recently. Despite this, the positive premium suggests that some investors are returning to buy Bitcoin directly from exchanges instead of through ETFs.
Trading activity also increased during the recovery. Spot trading volume jumped 22% to $46 billion, showing stronger market participation. Meanwhile, futures volume rose to $74.8 billion, but open interest stayed mostly flat. This suggests some traders are closing old positions instead of opening new ones.
Bitcoin is still under pressure overall. The cryptocurrency remains down 24% over the past month and about 50% below its all-time high of $126,050 reached in October 2025. This shows that the market is still in a recovery phase.
Technical indicators show early signs of improvement. Momentum is rising after Bitcoin entered oversold territory earlier this month. However, the price still needs to break above key resistance near $67,000 to confirm a stronger recovery.
If Bitcoin breaks above this level and demand stays strong, the price could move toward $70,000 in the short term. But if it fails to hold support near $64,000, the price could fall again, with $60,000 seen as the next major support level. For now, traders are watching closely to see if this bullish signal marks the start of a true comeback.
