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Sharp Recovery After Rapid Drawdown
Bitcoin prices climbed back above $93,000 during early Asian trading on Wednesday, less than 48 hours after the asset plunged to $84,000 in a sharp leverage-driven correction. The swift rebound has erased nearly all losses from the recent sell-off and has brought BTC back to a critical resistance zone that traders are watching closely.
The renewed momentum has also lifted market enthusiasm, which had briefly soured during the downturn. This cycle, however, continues to behave in unpredictable ways, prompting both optimism and caution among analysts.
Analysts Weigh In on Quick Market Reversal
Market observer Daan Crypto Trades pointed to the unusual monthly candle formation, noting that rapid directional moves at the start of a month often retrace. He commented, “Whenever a new month instantly moves up or down, and leaves no wick or anything behind, these levels are often taken out. This was a very quick and clean example of that.”
He added that the total cryptocurrency market capitalization has recovered June’s lows and is beginning to show “solid low time frame strength.”
According to his analysis, further near-term relief would require the market to form clearer structures: “For December to be able to show some further relief, you’d want to see this start making those higher lows and higher highs on the low time frame first. Breaking last week’s high would confirm such a local higher high.”
Total market cap currently stands at $3.2 trillion, still about 27% below its early October peak of $4.4 trillion.
On-chain data provider Glassnode reported the emergence of “large short-liquidation clusters,” adding that such events can sometimes accelerate upward momentum as forced buying pushes prices higher.
Analyst Sykodelic echoed the growing optimism, saying, “Everyone on the timeline was absolutely losing their minds yesterday with that dip. But it was exactly what we wanted to see.”
Not All Experts Are Convinced
Other analysts urge caution. CryptoCon described the latest recovery as a possible bear-market rally. “On every price bump, you’ll see: ‘Bottom’s in, new ATHs soon.’ That’s the bear market trap,” he warned, arguing that broader market cycles tend to take longer to unfold.
“The bear market usually takes the full year to play out, so it’s a long, painful process,” he added.
Broader Crypto Market Reacts to Bitcoin’s Bounce
Bitcoin’s rebound also supported Ether, which reclaimed the $3,000 level—a significant barrier the asset must overcome to attempt a move toward $3,400.
