Bitcoin (BTC) has gone up by 11.2% in the past 7 days, and bulls have managed to recapture the $90,000 as sellers seem to have taken a breather.
Last week’s strong jobs report in the United States, along with some dovish comments from the head of the NY Federal Reserve, seems to have helped appease the market’s concerns.
Odds of a rate cut in December have increased significantly since then, moving from 44% to 80% at the time of writing, according to data from FedWatch.
Meanwhile, market sentiment has improved significantly in the past few days, moving from a record-low of 11 in the Fear and Greed Index to 20 at the time of writing.
The last time the F&G made a record low was in April this year. This marked the bottom of the bear market that started in December. History might not repeat, but it often rhymes.
When panics reigns, whales tend to enter the scene to scoop up the asset at a lower price. Trading volumes are still relatively low, meaning that this still qualifies as a dead cat bounce and not a recovery.
Traders’ participation remains weak, which further calls for caution as bulls could get trapped by this bear market rally. Open interest in Bitcoin (BTC) futures stands at 654,000 BTC, according to data from CoinGlass, which is 13% below its nearest peak in November 20.
Bitcoin Climbs Above $90,000 as Rate Cut Hopes Fuel Rally
The daily chart shows that BTC was backstopped at around $85,000 after last week’s positive economic data.
The Relative Strength Index (RSI) has emerged from deep oversold territory and has already jumped above the 14-day moving average. This is commonly interpreted as a buy signal.
That said, the price still has to retest the $95,000 threshold. At this level, the 9 and 21-day exponential moving averages (EMAs) will likely meet. This increases the technical relevance of this price zone.
If we get a bullish crossover or a bearish rejection, that could provide a strong signal of where BTC may be going by the end of the year.
If bulls fail to push BTC above this area, the odds will favor the continuation of the latest downtrend. In that case, the downside potential for BTC would be much higher, as BTC could drop to $76,000.
A 25 basis points rate cut, paired with some improvement in the relationship between the U.S. and China, could give the market the necessary boost to recover some of the territory it has lost in the past month.
Nonetheless, bears are still in control, as the market structure favors sellers, not buyers, at this point.
As BTC recovers, top projects and crypto presales linked to it, like Bitcoin Hyper ($HYPER), will also experience a boost. This promising layer-2 chain has raised nearly $30 million to launch its Solana-powered scaling solution.
Bitcoin Hyper ($HYPER) Introduces a Fast and Cheap L2 for The Top Crypto.
Bitcoin Hyper ($HYPER) aims to solve some of Bitcoin’s biggest limitations by adding a fast, cheap, and programmable side chain on top of the world’s largest blockchain.
This L2 is designed to support quicker transactions, lower fees, and tools that developers can use to build powerful applications.
All of this is possible by leveraging the power of Solana’s more efficient smart contracts network.
This gives Bitcoin something it’s been missing for years — room for dApps, smart contracts, and scalable Web 3 activity. BTC holders don’t have to leave the Bitcoin ecosystem now to earn yield and stake their tokens, as they can use the Hyper Bridge and L2 to generate passive income safely.
As wallets and exchanges start to embrace this scaling solution, the demand for $HYPER should skyrocket.
To buy $HYPER before its next price increase, simply head to the official Bitcoin Hyper website and link up a compatible wallet like Best Wallet. You can either swap USDT or SOL for this token or use a bank card to invest.
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