A surprising V-shaped reversal has occurred. Will BTC reappear in the "gold pit"?

Source: Bitpush

After several days of thrilling shocks, risk assets reversed overnight.

Bitpush data shows that 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, and the Nasdaq closed down to 0.35%.

Market sentimentand the "tug of war" with the macro economy

Recent market conditionsare in a stalemate. After Bitcoin rebounded from a low of $78,000 on February 21 to $95,000, it 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 short-lived and failed to reverse the overall market's weak trend. 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 the US market sentiment shows substantial improvement. Under the influence of multiple factors such as unclear regulatory policies, complex and changeable macroeconomic environment, and continued fluctuations in investor sentiment, it is still unknown whether Bitcoin can maintain a high level for a long time. Before stronger market catalysts emerge, Bitcoin may continue to fluctuate in a wide range. Investors need to pay close attention to market trends and capture key signals.

After the $90,000 mark was lost,bullsfaced severe challenges

Although the market has tried to rebound many times, Bitcoin and the entire cryptocurrency market are still under pressure and have failed to effectively establish a sustained upward trend.Many analysts have issued warnings thatbulls must take action as soon as possible to regain key points if they want to reverse the downward trend, 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 may not be 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 happy result for major market stakeholders, including early "whale" investors, large mining companies, traditional financial institutions, and US President Trump, who has publicly expressed support for cryptocurrency. Retail investors are usually considered to be late entrants in the bull market cycle, and at the current 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, which has played a vital role in the market game in recent weeks.

If Bitcoin continues to run below $85,000 in the next few days, it may trigger a larger market sell-off. The concentrated release of selling pressure may cause the price of the currency 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%, -25%. Each correction caused panic in the market, 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 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 US$85,000 and US$90,000 will become the focus of competition between the long and short sides 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 MasterAnanda, the current market trend is very "interesting" and sends out some key signals worthy of attention:

1. The bottom may have been found: Last week, Bitcoin fell 28% from its all-time high of $109,000, hitting a low of $78,300 and then rebounded strongly. This "bottoming out and rebounding" V-shaped reversal trend is usually regarded as a signal of the formation of a stage bottom in the market, indicating that the possibility of further sharp declines in the short term is reduced.

2. Healthy correction in the bull market: After a strong bull market, it is normal for the market to have a certain degree of correction. This correction helps to release the accumulated profit-taking in the early stage of the market and accumulate new upward momentum for the market. Healthy adjustments can lay the foundation for a longer-term bull market.

3. The "golden pit" for bargain hunting: The current market correction actually provides a rare entry opportunity for off-site funds. If you missed the previous rapid rise of Bitcoin from US$85,000 to US$95,000, then now may be a good opportunity to layout at a relatively low level. There is always no shortage of opportunities in the market, and the correction is an important "accumulation stage" in the bull market cycle.

4. The long-term bull market trend has not changed: Bitcoin's long-term upward growth trend has not changed fundamentally. From the historical law, Bitcoin is expected to regain its upward trend in the next few months and gradually fluctuate upward. According to previous analysts' predictions, Bitcoin still has the potential to hit the target price of $120,000 next month.

5. Technical indicators provide support: From the Bitcoin daily chart, the 200-day moving average (MA200) is playing a key supporting role, and MA200 has long been regarded as one of the most important technical indicators for judging the long-term trend of cryptocurrencies. The current Bitcoin price trend is forming higher lows, indicating that the bullish trend may be further confirmed.

6. Market sentiment and capital accumulation: This cycle is not simply driven by US government policies or geopolitical events, but also follows the cyclical laws of the market itself. Bitcoin is ready to enter a new round of growth and is expected to set a new high in 2025. In addition, there is still a large amount of funds waiting for opportunities outside the market. Once the market stabilizes and rebounds, these funds are expected to accelerate their entry and further boost the market.

In summary, Bitcoin may have found its stage bottom, and the market is entering the "accumulation stage" of shock accumulation. Although short-term market fluctuations are inevitable, the long-term bull market trend remains solid. Investors can seize the current correction opportunity, deploy in batches at relatively low levels, hold patiently, and wait for the market to finally choose a direction.