Viewpoint: Bitcoin has risen to $87500, but the market structure remains "fragile"

Odaily News Analysts indicate that Bitcoin has recovered from the significant liquidation and selling pressure triggered earlier this week, currently trading at approximately $87,645, up 1.8% in the past 24 hours. Last Friday, Bitcoin dropped to around $81,000. Other crypto assets have also rebounded, with ETH rising 0.5% to $2,834, XRP increasing 2.65% to $2.09, and Solana up 2.5% to $133. The entire crypto market has seen a 1% rise in the past 24 hours. Analysts describe this price recovery as a “post-flush bounce” but note that the move lacks sustained momentum. Vincent Liu, Chief Information Officer of Kronos Research, states that Bitcoin's current trend resembles a “post-flush bounce,” with shallow liquidity, fragmented trading flow, and buying interest seeking stability, while long-term holders are accumulating. He anticipates that Bitcoin will consolidate within a narrow range of $85,000 to $90,000 due to shallow liquidity and stop-loss orders being cleared. Rachael Lucas, a crypto analyst at BTC Markets, mentions that Bitcoin is consolidating after experiencing the deepest pullback of this cycle; maintaining above $86,000 in the short term is positive, but the market structure remains “fragile.” Lucas points out that if Bitcoin can hold above $88,000, it will confirm the bottoming process; conversely, failing to do so presents a risk of falling to $80,000. Lucas states that short-term traders remain cautious and are driven by funding flows, closely monitoring funding rates and liquidation levels for signs of stability. For institutions, it is currently an “asset rotation phase rather than an exit,” with ETF outflows reflecting risk management rather than abandonment. (TheBlock)