Bitcoin Price Rebounds Amid Stock Market Recovery Efforts
Bitcoin price rebounded over $81,000 on March 11, rising approximately 4% as U.S. stock futures sought recovery from a recent sell-off. Analysts speculate on a possible short squeeze, despite forecasts indicating a challenging environment ahead. The market sentiment remains cautious, with some traders unsure if Bitcoin will hit previous all-time highs.
On March 11, Bitcoin (BTC) experienced a notable rebound, surpassing $81,000 as United States stock futures attempted to recover from a significant sell-off. Cointelegraph Markets Pro and TradingView reported that Bitcoin’s daily price gains approached 4%, providing a glimmer of hope amid fears surrounding a recession that previously drove investors away from risk assets.
The previous day’s Wall Street trading session concluded with the S&P 500 and Nasdaq Composite Index declining by 2.7% and 4%, respectively. Despite a chaotic trading climate, Nasdaq 100 futures began to recover slightly, showing approximately a 0.4% improvement from their lowest levels since September 2024.
In a relevant comment, The Kobeissi Letter suggested that the markets might have fallen into an unsustainable downtrend, leading to thoughts of a potential short squeeze in response to prevailing extreme fear among risk-asset investors. The considerable readings from the VIX volatility index were pointed out, indicating that such levels have only occurred 11% of the time since 1990, as explained by Timothy Peterson, an economist focused on Bitcoin price forecasting.
After reaching $76,600 on Bitstamp, Bitcoin showed some signs of recovery with traders like Cas Abbe indicating a bullish divergence on the 4-hour timeframe. This divergence could signal a short-term increase in price. However, Rekt Capital advised monitoring the relative strength index (RSI) on the daily chart for further confirmation of a sustainable rebound in Bitcoin’s price.
Despite the short-term optimism, several prominent figures within the crypto market expressed skepticism about Bitcoin’s long-term potential. One pseudonymous trader, HTL-NL, suggested that Bitcoin is unlikely to reach its previous all-time highs, emphasizing that the current issues affecting the crypto space are reflective of broader market conditions rather than being exclusive to cryptocurrencies.
In summary, Bitcoin’s recent price rebound is correlated with attempts to stabilize in response to the turbulence in the stock market. Experts point to potential indicators for a short squeeze and a bullish divergence in Bitcoin’s price analysis. However, prevailing caution remains among analysts regarding the cryptocurrency’s ability to reach previous highs. Investors are encouraged to conduct thorough research due to the inherent risks in trading.
Original Source: www.tradingview.com
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