Bitcoin (BTC) Price Action Signals the Potential Start of a Major Recovery Rally

After weeks of uncertainty and sideways movement, Bitcoin's strong price recovery is bringing a wave of optimism back into the crypto space.

Since Bitcoin reclaimed the $90K level on Tuesday, market sentiment has started to shift dramatically. After weeks of uncertainty and sideways movement, BTC’s strong price recovery is bringing a wave of optimism back into the crypto space.

Price action is now signaling the potential start of a major recovery rally, with bulls visibly gaining momentum and eyeing higher resistance levels. However, investors should still be cautious. Global tensions, particularly the ongoing trade war between the US and China, continue to cast a shadow over financial markets.

These geopolitical factors could heavily influence Bitcoin’s trajectory in the coming months—or even years—depending on how negotiations evolve. But new data from CryptoQuant is supporting the growing bullish narrative. The Bitcoin Advanced Sentiment Index has now climbed to a strong reading of 67%, suggesting that confidence is returning among market participants.

Historically, such high levels of sentiment have been linked with sustained bullish trends, especially when they are also supported by technical breakout levels. As the market recovers, traders will be closely watching to see if this optimism can translate into sustained price gains.

Bitcoin Faces Turning Point As Bulls Gain Short-Term Control

Bitcoin is entering a pivotal moment that could shape the next phase of the market. After reclaiming key resistance levels and pushing above $90K, bulls now have a slight edge in the short-term outlook. The question is whether this momentum can be sustained, or if a deeper correction still lies ahead.

Global instability, especially the ongoing trade tensions between the US and China, continue to cloud the outlook. Supply chain risks, uncertain monetary policy, and geopolitical pressures are keeping markets on edge.

While crypto has often been seen as a hedge against such macroeconomic stress, it remains vulnerable to shifts in global sentiment. Despite the risks, some analysts are optimistic. Top analyst Axel Adler stated on X: “I don’t think bears in the futures market have any chance.” He was referencing the overwhelming bullish positioning in derivatives markets.

Futures open interest and funding rates are both surging, which indicates growing confidence among traders. However, this kind of volume must be supported by demand in the spot market to sustain the rally. If buyers are concentrated only in leveraged markets, then the price may lack the real backing needed for a long-term breakout.

Without traders steadily accumulating BTC at higher prices in the spot market, any selling pressure could quickly overwhelm the momentum and push prices lower.

BTC Price Pushes Higher, But Key Resistance Remains

Bitcoin is trading at $94,200 at the time of writing, after a brief dip to $91,000 earlier today saw buyers quickly step back in to defend key support. The bounce from lower levels reinforces the idea that buyers are quickly stepping in to defend key support zones, at least while the broader trend remains intact.

However, the real test will be at the next major resistance range. Reclaiming the $95,000–$96,000 zone would be critical for confirming the sustainability of this recovery rally. A breakout above this range would likely trigger the next leg up toward $100,000.

Still, analysts are warning that this move might not happen immediately. Instead, Bitcoin could enter a consolidation phase below $95,000 for several days or even weeks as the market absorbs recent gains and allows sentiment and structure to reset without invalidating the overall bullish trend.

Maintaining a hold above the $90K–$91K zone during any retests will be essential for maintaining bullish confidence, especially if global macroeconomic conditions deteriorate.

For now, bulls have a slight edge, but the next breakout needs strong volume and continued demand to avoid another rejection. Until then, traders should be prepared for choppy price action as BTC navigates this key resistance region.