Bitcoin is showing signs of recovery after the sharp decline and mass liquidations experienced at the beginning of last week.
Bitcoin Rises to $87,500 Despite Fragile Market Structure
The world’s largest crypto asset rose 1.8% in the last 24 hours to reach $87,645. The price fell to around $81,000 on Friday, sparking widespread market panic.
Not only Bitcoin but also other major cryptocurrencies are showing a recovery trend. Ethereum is trading at $2,834, up 0.5 percent, XRP is trading at $2.09, up 2.65 percent, and Solana is trading at $133, up 2.5 percent. The overall crypto market capitalization is also up 1 percent in the last 24 hours.
Analysts describe this rise as “a rapid reaction rise on a fragile base.”
Kronos Research CIO Vincent Liu stated that the current price action is a “post-flush bounce, with shallow liquidity, fragmented flow, and long-term investors accumulating.” Liu stated that Bitcoin could enter a tight consolidation period in the $85,000-$90,000 range in the short term.
Market sentiment remains weak, with the fear and greed index currently at 19 points, down from 13 at the start of the week and still in “extreme fear” territory.
Bitcoin is in a consolidation phase following its sharpest correction of the cycle, according to BTC Markets analyst Rachael Lucas. Lucas said that while the price holding above $86,000 is positive, the market structure remains fragile.
According to the analyst, persistence above $88,000 will confirm the bottom formation; otherwise, the price may drop back to the $80,000 level.
Lucas also emphasized that short-term investors are closely monitoring funding rates and liquidation levels, while long-term investors still rely on Bitcoin’s inherent demand. For institutional investors, he noted that this is not an exit, but a “rotation period,” and that ETF outflows are being considered within the scope of risk management.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/bitcoin-btc-crosses-87000-is-the-drop-over-heres-what-analysts-say/
