The cryptocurrency market experienced a brief rebound on Monday, with the overall market rising by more than 1.8% in the past 24 hours.
Bitcoin, along with most of the top 20 cryptocurrencies, posted gains, signaling renewed bullish momentum.
The crypto asset rallied above $89,000, fueled by optimism following the recent liquidation of long traders over the past four weeks. At the time of writing this report, BTC had retraced slightly to $87,278 but remained in an ongoing rally. Some analysts suggest that the asset is well-positioned to continue momentum upward in the near term, supported by favorable macroeconomic conditions.
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The midterm outlook for Bitcoin appears bullish, driven in part by a recovery in global economic activity and growing conviction among institutional investors. Notably, diplomatic developments between the United States and China provided additional market support. Earlier this week, U.S. President Donald Trump and Chinese President Xi Jinping reaffirmed their countries’ commitment to strengthened bilateral ties. The White House commented, “Our relationship with China is extremely strong! This call was a follow-up to our highly successful meeting in South Korea, three weeks ago.”
Market watchers note that rising interest from institutional “whale” investors could further propel Bitcoin toward new all-time highs. From a technical perspective, the BTC/USD pair is on the verge of a potential parabolic move, drawing comparisons to gold’s recent surge.
Despite the gains, Bitcoin continues to face resistance at key levels. While remaining within a broader bullish order-flow zone, the overall market trend has been decisively bearish. Analysts indicate that reclaiming levels above $96,000 is necessary for a mid-range retest toward $100,000–$104,000. Failure to surpass this pivot could open the door for a deeper retracement toward the lower accumulation band between $80,000 and $83,000.
Amid the current upward price action of Bitcoin, a significant number of analysts are cautioning that the current relief rally may be a temporary phenomenon. Crypto analyst Elja examined Bitcoin’s weekly chart following a dip to $82,000, noting that short-term rebounds after steep declines can give traders false hope of a sustained bull market.
Elja highlighted $98,000 as a critical level for BTC’s immediate direction, stating, “After a major drop, you often see a quick relief rally, like a ‘dead cat bounce,’ and this doesn’t mean the bull market will immediately return. Keep an eye on the $98,000 level. It used to be support and could now turn into resistance.”
Also, market analyst Ted Pillows described the recent price uptick as a “relief bounce” rather than a meaningful shift in sentiment. He explained that while such rebounds can spark short-term optimism, they often dissipate in a broader negative market structure, leaving the overall trend pointing downward.
As Bitcoin navigates these levels, traders and investors remain cautious, balancing optimism from temporary rallies against the potential for further retracements in the market.
Outlook
Bitcoin’s short-term trajectory remains cautiously optimistic. The recent rebound above $89,000demonstrates renewed bullish momentum, supported by recovering global economic activity and strong interest from institutional investors. However, technical indicators show that BTC faces significant resistance levels, with $96,000–$98,000 acting as pivotal points for determining the next move.
If buyers can maintain stability above $96,000, Bitcoin could retest the $100,000–$104,000 range in the near term. Conversely, failure to reclaim these levels may lead to a deeper retracement toward the $80,000–$83,000 accumulation band.