SKN | Bitcoin Rebounds From Weekly Lows, but Analysts Warn a Slide Below $80,000 Remains Possible

Bitcoin rebounded from Monday’s sharp selloff, recovering from its weakest levels of the week as short-term bargain hunting emerged across major exchanges. Despite the bounce, market analysts caution that downside risks remain elevated, with some warning that a move below $80,000 cannot be ruled out if macro and liquidity pressures persist.

Market Reaction and Price Stabilization

Bitcoin climbed back toward the $83,000–$84,000 range after briefly dipping below $82,000, trimming losses that had exceeded 7% at the session low. Spot trading volumes surged above $48 billion over 24 hours, indicating active repositioning rather than a low-liquidity drift. Ether followed a similar pattern, rebounding roughly 3% after underperforming bitcoin earlier in the week.

The broader crypto market also stabilized, though gains were uneven. High-beta altcoins lagged the recovery, reflecting a defensive shift among traders. Total crypto market capitalization recovered modestly to around $3.0 trillion, still well below levels seen earlier in the month.

Technical Levels and Derivatives Signals

From a technical perspective, bitcoin’s bounce occurred near its 100-day moving average, a level closely monitored by systematic and trend-following strategies. However, analysts note that the recovery has yet to reclaim key resistance near $86,000, where selling pressure has repeatedly emerged.

Derivatives data points to lingering caution. Open interest across major perpetual futures venues declined by nearly 6% from last week’s peak, suggesting that leveraged positions are being reduced. Funding rates remain close to neutral, a contrast to the strongly positive readings seen during recent rallies, and a signal that speculative appetite has cooled.

Investor Sentiment and Macro Crosscurrents

Institutional sentiment appears mixed. On-chain metrics show long-term holders largely maintaining positions, with wallets holding bitcoin for more than one year showing minimal net outflows. In contrast, short-term holders and momentum-driven funds have been quicker to reduce exposure amid uncertainty around interest rates and global liquidity.

Macro factors continue to weigh on sentiment. Elevated U.S. Treasury yields and a firmer dollar have pressured risk assets broadly, while expectations that central banks will keep policy restrictive for longer have reduced enthusiasm for aggressive crypto positioning. Psychologically, repeated failures to sustain rallies above recent highs have increased sensitivity to downside scenarios, including the $78,000–$80,000 zone highlighted by several technical analysts.

Looking ahead, market participants will be watching whether bitcoin can build a base above current levels or if renewed selling emerges on macro-driven headlines. A sustained recovery would likely require improving risk sentiment and declining leverage, while a break below support could accelerate moves toward lower technical targets. For professional investors, the current environment underscores the importance of disciplined risk management as crypto remains closely tied to global financial conditions.