Bitcoin rebounds towards $88,000 after a violent drop, but the market remains nervous, with a lingering sense of extreme fear and very fragile liquidity.
Un rebond qui rassure… sans vraiment convaincre
Bitcoin briefly rises near $88,000 after a sharp drop emptied order books and triggered a wave of liquidations. The crypto market finally breathes a sigh of relief, but the sentiment remains tense. Many were expecting a real sign of recovery. So far, we are not there yet.
The recovery remains slight. Bitcoin has just gained about 2% over 24 hours to reach nearly $88,000 before dropping back to around $86,000, still far from the $81,000 air pocket hit on Friday. The entire market is benefitting from the movement. Ethereum is approaching $2,800, Solana settles at $130 with a slight increase. Even XRP is picking up slightly. In short, the market is rebounding, but no one is getting too excited.
Un rebond technique dans un marché toujours fragile
Analysts refer to this as a mere technical rebound after a brutal cleansing of over-leveraged positions. Vincent Liu, CIO at Kronos Research, describes a market still lacking in liquidity, where orders fragment and traders search for a stabilization zone. His scenario is based on a tight consolidation between $85,000 and $90,000, supported by thin liquidity pockets and easy-to-sweep stops.
This context explains the extremely negative sentiment. The Fear and Greed index barely rises to 13. We are still in extreme fear, a sign that investors still hold the exit button tight.
Les 88 000 dollars deviennent le test du moment
Un seuil qui peut changer la dynamique
According to Rachael Lucas, an analyst at BTC Markets, Bitcoin is trying to stabilize above $86,000, which is a positive point. However, the overall structure remains fragile. She sets the bar at $88,000. If Bitcoin regains this threshold, the market would finally validate a credible bottom formation for the rest of the cycle. On the other hand, failure would quickly send the price back to the sensitive $80,000 zone, and for now, it looks like it.
Short-term traders remain focused on funding rates, liquidations, and flow signals. They are mainly trying to avoid being trapped in a still nervous market. In contrast, long-term investors continue to accumulate discreetly. They are betting on the network’s structural demand, the depth of the ecosystem, and the strength of crypto fundamentals.
Les institutionnels réduisent le risque
Lucas emphasizes a key point. The outflows from crypto ETFs do not signify an abandonment of the market. They reflect a simple risk adjustment in a volatile phase. Institutions continue to increase their overall exposure. They are diversifying their allocations rather than distancing themselves from them.
The message is clear. The long term remains intact. The short term is a minefield. The crypto market is in a zone where every move can trigger a defensive reflex or an accumulation movement. The future will depend on Bitcoin’s ability to reclaim $88,000 and bring some order back to a still shaken structure.
