- Bitcoin recovered to $93,000 after dropping to $84,500 during Sunday’s leverage-induced selloff.
- Analysts emphasize $92,000 as crucial resistance level for potential breakthrough to new all-time highs.
The leading cryptocurrency kept surprising everyone with its toughness after it dropped heavily on Sunday. It managed to bounce back to the $93,000 range, thus, the talks about the crossing of the $100,000 barrier have been revived again.
Investors have seen the BTC price falling to $84,500 due to a leverage-induced selling event, and later, it made a nearly 3-day recovery rally in a flash turnaround. Bitcoin attained an early session intraday high of $93,040, representing a substantial 24-hour rebound of about 7%, as per the Coinbase trading data.
Technical Recovery and Market Sentiment
Leading market expert Michaël van de Poppe pointed out that Bitcoin has to keep its levels over $92,000 for the bullish trend to be sustained. The founder of MN Fund described the price action as positive and hinted that the drop on December 1st might just be a surprise instead of a reversal of the trend. Van de Poppe explained that technical indicators were extremely oversold during the crash of the weekend and that the readings were even more drastic than in the previous market disruptions.
He referred to the Luna collapse, the FTX implosion, and the COVID-19 pandemic selloff to highlight how deeply the recent drop was in comparison to those events. By overcoming the resistance that is in place now, it would be possible to see the Bitcoin price reaching a new all-time high and going over $100,000, in line with his reasoning.
Amid changing regulatory frameworks, LVRG Research director Nick Ruck was upbeat about Bitcoin’s journey to six figures within the next few months. He named a variety of factors that could support the scenario such as institutional adoption on a large scale, a cut in the Federal Reserve rates, and a new inflow of exchange-traded funds.
Market analysts pinpointed the $86,000 to $88,000 range as a very important support that had been tested sixty times without breaking down during the last few months. The fact that positions are maintained above this zone shows that selling pressure is low because market participants who are active are holding their profitable positions, says analyst Crazzyblockk.
On the other hand, if they fail to defend this crucial level, it may lead to the occurrence of distribution phases among well-informed investors, thus the beginning of scenarios that aim for lower price levels.
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Source: https://thenewscrypto.com/bitcoin-bounces-to-93k-following-leverage-flush-targets-100k/
