Bitcoin Attempts to recover Despite Recent Selloff

The Bitcoin market demonstrated resilience on Thursday, recovering some of its losses from the previous day’s decline. Prices stabilized near the $100,000 level, with a notable rebound of approximately $2,000, suggesting a strong underlying demand for the cryptocurrency. The most famous cryptocurrency traded at $102,300 earlier on Thursday, before sliding to $96,181 at the time of writing.

Market Sentiment Remains Bullish

Despite the recent pullback, market sentiment towards Bitcoin remains largely bullish. Investors appear to be adopting a “buy the dip” strategy, accumulating Bitcoin during periods of price weakness. This bullish sentiment prevails despite the Federal Reserve’s recent hawkish stance, which typically exerts downward pressure on risk-linked assets.

Technical Factors

Support Levels: Significant support levels exist near $95,000 and the 50-day EMA around $92,000, providing a cushion against further downside.

Upside Potential: The market is likely to continue its upward trajectory, with a potential target of $110,000.

Volatility: Expect continued volatility in the near term, especially with the holiday season approaching, which may see reduced trading activity from some institutional investors.

The recent price action suggests strong underlying demand for Bitcoin. Despite the Fed’s hawkish stance and potential for near-term volatility, the overall market sentiment remains bullish, with investors continuing to accumulate Bitcoin during periods of price weakness.