Summary
- The total cryptocurrency market capitalization has rebounded to $3.5 trillion, rising 3% in 24 hours after around $2 billion in liquidations.
- Technical indicators for Bitcoin show oversold conditions, hinting at a possible continued recovery despite weak trend data.
- Prediction market data reflects cautious optimism regarding Bitcoin’s future.
Following a turbulent 48 hours for Bitcoin investors, during which BTC briefly fell below $100,000 for the first time since May, the cryptocurrency market is showing signs of recovery.
The recent flash crash led to over $2 billion in liquidations, predominantly from long positions, marking one of the year’s largest purges of leveraged positions.
This event appears to have established a temporary bottom, clearing out jittery investors and overleveraged traders. The total market capitalization of cryptocurrency has retrieved to $3.5 trillion, with a healthy 3.5% gain in the past 24 hours, as per CoinGecko.
Traditional markets are presenting a mixed backdrop for the crypto recovery, with the S&P 500 gaining 0.7% on Wednesday, while the Nasdaq Composite advanced by 0.9%, aided by a rebound in AI stocks. Nonetheless, the prolonged U.S. government shutdown adds a layer of uncertainty concerning economic data and policy choices.
Despite social media’s negative sentiment and some analysts lowering their price targets, Bitcoin’s sentiment has become slightly bullish on Myriad, a prediction market associated with Decrypt. Currently, Myriad users estimate a 67% chance of Bitcoin returning to $115,000 instead of declining to $85,000.
Key price levels to monitor include immediate resistance at $105,000, strong resistance between $108,000-$109,000, immediate support at $102,000, and strong support at $100,000. The crucial question remains whether Bitcoin can create a new base before initiating a sustainable rally.
