Bitcoin Rebound To $65K Holds As US Stocks Recover From AI Meltdown
Bitcoin rebounded to $65,000 as US stocks recovered from an AI-driven sell-off, but analysts remain cautious about a sustained reversal.Summary
Bitcoin's price stabilized on Tuesday following a recovery in US stock markets after a sell-off triggered by concerns surrounding AI stocks. The Dow Jones Industrial Average gained 370 points, and the S&P 500 rose 0.77%, providing a lift to crypto investors. Analysts emphasize the importance of Bitcoin maintaining its position above the $65,000 support level and the $60,000 level, warning that a drop below the latter could lead to further declines. Despite being 49% below its all-time high, a $4.5 million spot purchase by large investors signaled potential buying interest. While Bitcoin is currently oversold, with its weekly RSI reaching levels not seen since July 2022, opinions diverge on whether a bottom has been reached. Some analysts point to the proximity of the 200-week exponential moving average as a potential sign of stabilization, while others caution that the recent close below this average could turn it into resistance. The process of finding a bottom could take months, requiring equalization of the BTC supply in profit/loss and a bounce off mining costs, with potential impacts from future US Federal Reserve rate cuts.
(Source：Cointelegraph)