Bitcoin Bounces Back: Can Bullish Momentum Hold or Has the Market Topped?
Bitcoin's recent price action shows signs of a potential recovery after a significant dip below $100,000. Following a crash that resulted in over $2 billion of liquidations, the total cryptocurrency market cap has rebounded to $3.5 trillion, marking a 3.5% increase within 24 hours. Despite the recovery, Bitcoin's technical indicators exhibit a complex sentiment. The Relative Strength Index (RSI) stands at 38, indicating waning selling pressure, yet the Average Directional Index (ADX) suggests a lack of strong trend direction. The market conditions remain cautious, as Bitcoin trades below both the 50-day and 200-day exponential moving averages. Traders are closely monitoring the $105,000 resistance level for evidence of a sustained recovery, while immediate support is noted at $102,000 and a critical psychological level at $100,000. Observers are debating whether this moment indicates a short-term bottom or a descent into a prolonged bearish market. If Bitcoin holds above $90,000 in the near term, it may not signify the onset of a crypto winter, although significant risks remain for early 2026.
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