Bitcoin Bounces Back: Can Bullish Momentum Hold or Has the Market Topped?

Bitcoin has shown signs of recovery after a significant drop that saw it dip below $100,000 for the first time since May. The cryptocurrency market rebounded to a total capitalization of $3.5 trillion, following a sell-off that led to approximately $2 billion in liquidations, primarily from long positions. Despite a cautious market, technical indicators suggest oversold conditions, with the Relative Strength Index (RSI) signaling potential for recovery. However, Bitcoin's average directional index indicates low trend strength, leading to uncertainty about sustained upward momentum. Key resistance levels are identified at $105,000 and $108,000, while immediate support is at $102,000 and strong support at $100,000. Analysts emphasize that if prices do not stabilize, a downturn could resemble past scenarios, emphasizing vigilance among investors as they navigate this volatile market situation.

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