Bitcoin has recovered above $86,000 after a significant drop last week that brought the price to a multi-week low. A moderate rebound within 24 hours, along with an approximate 1% rise across the overall crypto market, signals a slight shift in sentiment following recent heavy selling and widespread liquidity issues.
Other major altcoins such as Ethereum, Ripple, Solana, and Dogecoin also recorded small gains and held above key support levels, indicating potential continuity in the recovery. However, analysts emphasize that market sentiment remains fragile and any loss of momentum could trigger renewed pressure.
Investors are also monitoring developments in US monetary policy. Fed Chair Jerome Powell may suggest an additional 25 basis point rate cut at the December meeting, although Fed officials remain divided in their views. Powell’s dovish tone could support risk assets, including Bitcoin.
However, Bitcoin ETFs in the US continue to show pressure with $1.22 billion in outflows last week. This reflects investors’ cautious stance in a shaky market filled with selling after the price drop.
From a technical perspective, Bitcoin shows early signs of recovery with a positive MACD and a neutral RSI. A price breakout above $90,000 could open the way for BTC to return to $92,000. However, a drop below $84,000 or more significantly to $80,000 could increase the risk of further declines.
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