Bitcoin rebounds above $78,500; no basis for long-term rally yet: analysts

Bitcoin (BTC) staged an impressive rebound during Tuesday’s trading session, surging past the critical $78,500 mark. The world’s largest cryptocurrency had recently faced selling pressure that pushed it towards the lower end of its recent trading range. This latest move provides temporary relief and reignites optimism among short-term traders.

Despite the strong momentum, market analysts are issuing warnings regarding the sustainability of this rally. According to several reports published by leading financial institutions, the underlying basis for a prolonged, fundamental uptrend remains lacking. Analysts suggest that the price action is primarily driven by technical factors, including short squeezes and fluctuating sentiment around U.S. spot ETF flows, rather than a significant change in macro economic conditions or intrinsic market structure.

Experts caution investors that resistance levels approaching $80,000 will prove challenging to overcome without substantial new capital injection or positive geopolitical catalysts. The consensus is that BTC is currently operating within a high-volatility trading range. While the rebound confirms strong demand at lower price levels, it is currently categorized as a significant correction within that range, rather than the initiation of a new parabolic bull run.

Source: Bitcoin rebounds above $78,500; no basis for long-term rally yet: analysts