Bitcoin Rebound Above $100,000 Sparks Recovery Hopes, But Analysts Urge Caution

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**Bitcoin Rebound Above $100,000 Sparks Recovery Talks in 2025 Crypto Market**

Bitcoin recently bounced from $99,600 to $103,400, according to data from CoinGecko, rekindling trader optimism amidst ongoing market volatility. Meanwhile, CryptoQuant reports that 28.1% of Bitcoin’s supply is currently held at a loss—a level historically associated with price reversals.

However, analysts like Shawn Young from MEXC Research caution that this uptick lacks long-term conviction. For a true recovery, sustained accumulation by long-term holders is essential.

### What Is Bitcoin’s Rebound Above $100,000?

Bitcoin’s rebound above $100,000 refers to the cryptocurrency’s recent price recovery following a sharp sell-off that erased 25% from its October peak. The price moved from a low of $99,600 to approximately $103,400, according to CoinGecko data.

This movement has sparked optimism among traders but is largely considered a technical bounce rather than a fundamental shift. On-chain metrics from CryptoQuant show that 28.1% of Bitcoin supply is now held at a loss—a condition that has historically preceded significant market rallies.

### Is This Bitcoin Recovery Sustainable?

The sustainability of Bitcoin’s rebound above $100,000 depends on multiple factors, including consistent accumulation from long-term holders and stable funding rates in the market.

On-chain analyst Willy Woo recently noted that liquidity behind Bitcoin is recovering, which may lead to price confirmation within two weeks. Historical data supports this perspective: CryptoQuant reveals that a 27% loss-supply spike in April 2025 preceded a 70% rally, while a similar surge in September 2024 triggered a 125% price increase.

Despite this, Shawn Young, Chief Analyst at MEXC Research, warns that the current rebound is primarily driven by spot inflows and leveraged short-covering—not a resurgence of long-term investor confidence.

> “What we are looking at right now is a technically driven rebound,” Young stated, emphasizing the importance of broader on-chain signals to confirm an enduring bottom.

Without these confirmations, the bounce could be temporary, leaving the market vulnerable to further downside risk during this cooling cycle.

### Frequently Asked Questions

**What caused Bitcoin’s recent drop below $100,000 before the rebound?**
Bitcoin’s dip below $100,000 was part of a broader market sell-off that wiped 25% off its October peak, pushing loss-held supply to 28.1%, according to CryptoQuant. Macroeconomic pressures and ongoing economic uncertainties also weighed heavily, making traders cautious about prolonged volatility in 2025.

**Will Bitcoin hold above $103,000 for a full recovery?**
Holding above $103,000 on a weekly candlestick close could indicate a mid-term accumulation phase leading into 2026, says Jiehan Chen, Operations Onboarding Lead Analyst at Schroders. However, experts such as Alex Thorn from Galaxy Digital advise caution, lowering year-end targets to $120,000 amid choppy macroeconomic conditions.

### Key Takeaways

– **Technical Bounce in Play:** The rebound above $100,000 is fueled mainly by spot inflows and short-covering, lacking fundamental backing at present.
– **Historical Precedents:** Loss-supply levels around 28.1% have previously led to significant rallies—for example, a 70% surge in April 2025 and a 125% surge in September 2024.
– **Macro Watch:** Positive developments, such as resolving government shutdowns, might stabilize the market; monitoring on-chain holder accumulation will be crucial.

### Conclusion

Bitcoin’s recent bounce above $100,000 injects renewed hope for recovery in the 2025 crypto market. While technical signals and historical precedents suggest potential upside, sustainability hinges on increased holder accumulation and favorable macroeconomic developments.

Stay informed on Bitcoin’s path forward as traders weigh optimism against caution amid ongoing market uncertainties.
https://bitcoinethereumnews.com/bitcoin/bitcoin-rebound-above-100000-sparks-recovery-hopes-but-analysts-urge-caution/

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