Bitcoin (BTC) Rebounds From the Day's Low of $81,500 to More Than $88,000

According to Bitpush data, in the past 24 hours, Bitcoin (BTC) rebounded from the lowest point of the day at $81,500 to more than $88,000

After several days of thrilling fluctuations, risky assets reversed overnight.

According to Bitpush data, in the past 24 hours, Bitcoin (BTC) rebounded from the lowest point of the day at $81,500 to more than $88,000, with a daily increase of nearly 10%. At the same time, the three major stock indexes narrowed their losses, with the Nasdaq closing down to 0.35%.

The tug-of-war between market sentiment and the macroeconomy

The recent market is stalemate. After Bitcoin rebounded from the low of $78,000 on February 21 to $95,000, it then fell back to around $81,000. The long and short sides are in a tug of war, and the market direction is unclear. Although Trump's "pro-crypto" statement once boosted market confidence, its impact was ultimately short-lived and failed to reverse the overall market weakness. Potential macroeconomic risks are still the "Sword of Damocles" hanging over the market.

Ki Young Ju, CEO of CryptoQuant, believes that the Bitcoin market may continue to linger in a downturn until there is a substantial improvement in US market sentiment. Under the influence of multiple factors such as unclear regulatory policies, complex and changing macroeconomic environment, and continued volatility in investor sentiment, it remains unknown whether Bitcoin can maintain a high level for a long time. Before a stronger market catalyst emerges, Bitcoin may continue to fluctuate in a wide range, and investors need to pay close attention to market trends and capture key signals.

After the $90,000 mark was lost, bulls faced severe challenges

Despite the market's repeated attempts to rebound, Bitcoin and the entire cryptocurrency market remain under pressure and have failed to effectively establish a sustained upward trend. Many analysts have warned that if bulls want to reverse the downward trend, they must take action as soon as possible to regain key points, otherwise Bitcoin may face the risk of further decline.

However, Ki Young Ju believes that it may be too early to assert that the bull market cycle has ended. CryptoQuant's on-chain data shows that the market's on-chain activity remains relatively flat and key indicators are neutral, indicating that despite the recent market weakness, the overall bull market pattern may not have been disrupted. In addition, Bitcoin's fundamentals remain solid, and more mining machines continue to come online, which also reflects that major market participants still have confidence in Bitcoin's long-term prospects.

Ju further pointed out that if this round of bull market cycle ends here, it may not be a result that the main stakeholders in the market would like to see, including early entrants of "whale" investors, large mining companies, traditional financial institutions, and US President Trump, who publicly expressed support for cryptocurrencies. Retail investors are usually considered to be late entrants in the bull market cycle, and at this stage, their market behavior may not be enough to dominate the market direction.

$85,000 becomes a key liquidity test, will the historical cycle repeat itself?

TradingView analysts believe that the more critical support level for BTC in the short term is still $85,000, a level that has played a vital role in the market game in recent weeks.

If Bitcoin continues to trade below $85,000 in the next few days, it may trigger a larger-scale market sell-off. The concentrated release of selling pressure may cause the currency price to accelerate downward and further confirm the bearish momentum of the market. At that time, Bitcoin may face the risk of testing lower support levels.

Quinten posted on the X platform: Looking back at history may provide us with some inspiration. In the last bull market cycle, Bitcoin experienced seven large corrections, with the correction ranges being: -17%, -17%, -32%, -26%, -28%, -51%, and -25%. Each correction has caused market panic, making people feel that the "bear market" has arrived. Whenever the price drops sharply, the market is always full of arguments that "Bitcoin is dead". However, history has proven that Bitcoin has finally successfully broken through resistance and continued to climb upward. It is true that history will not simply repeat itself, but it is often surprisingly similar.

On the whole, the two key price levels of $85,000 and $90,000 will become the focus of competition between the bulls and bears in the short-term market. Investors need to pay close attention to the gains and losses of these two points in order to judge the next direction of the market.

According to analyst Master Ananda, the current market action is very “interesting” and sends out some useful signals to highlight:

The bottom may have been found: Last week, Bitcoin fell sharply by 28% from