Bitcoin Rebounds Above $87,000 as Market Sentiment Stabilizes

In Brief:

BTC is now trading at $87,059, up 2.18% on the day

Market sentiment turns cautiously optimistic after volatility earlier this week

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Bitcoin Rebounds Above $87,000 as Market Sentiment Stabilizes

Bitcoin (BTC) has recovered above the $87,000 mark after briefly falling earlier this week, signaling a potential return of investor confidence amid ongoing market volatility.

According to HT market data, BTC is currently trading at $87,059, marking a 2.18% increase over the past 24 hours.

This rebound follows a turbulent start to the week, with prices dipping below key support levels and long liquidations nearing $1.2 billion. However, renewed buying activity and strong ETF inflows appear to be fueling the recovery.

The rebound aligns with broader improvements across the crypto sector, with Ethereum (ETH) also regaining momentum and select altcoins showing signs of life. Meanwhile, derivatives market activity remains elevated, with traders closely watching the $86,000 and $88,500 levels for the next major move.

Market analysts remain cautiously optimistic, noting that sustained movement above $87,000 could lead to a retest of this month’s highs, while any drop below $85,000 may trigger renewed liquidation pressure.

As of now, sentiment has improved slightly, with the Crypto Fear and Greed Index edging away from the "fear" zone.

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