Bitcoin continues recovery after hitting 7-month low, trades at $88K levels; Ethereum jumps 4%

After a massive bloodbath that saw Bitcoin hit a 7-month low, the world’s largest digital asset bounced back, inching close to $90,000 levels. On Tuesday, Bitcoin was trading at $87,975, higher by 0.2% with other alternate coins also mirroring the trend.

In the past 24 hours, Bitcoin gained 2% whereas Ethereum soared over 4% over the same period. Among the major altcoins, XRP, BNB, and Cardano rose 9%, 3%, and 4%, respectively. Solana, Dogecoin, and Hyperliquid also gained up to 5% in the last 24 hours. The global crypto market capitalisation edged higher by 1.02% to 3 trillion, according to CoinMarketCap.

“BTC crossed $89K due to the US equity market rebound, with positive U.S.–China geopolitical developments also adding to the sentiment. If this momentum continues, BTC could make another attempt at breaking the $90K level, which has acted as a key barrier in recent sessions.” CoinSwitch Markets Desk said.


“BTC’s liquidation heatmap shows strong short-squeeze liquidity above current levels, particularly around $89.5K–$90K, suggesting price may push higher to clear these zones. On the downside, liquidity sits near $85K–$86K, indicating that any pullback could briefly dip into this region before stabilizing,” it added.

Ethereum has also bounced, gaining roughly 13% from its recent swing low. The $3,000 level may serve as psychological resistance, while stronger technical resistance sits near $3,200.

“Altcoins such as Solana, XRP, and Dogecoin have logged notable recoveries after the recent pullback. In macro markets, Fed funds futures imply about a 70% probability of a 25-basis-point rate cut, according to the CME FedWatch tool, a development that could provide an additional tailwind for crypto markets,” Piyush Walke, Derivatives Research Analyst at Delta Exchange, said.

As per Deutsche Bank, long-term holders have offloaded more than 800,000 BTC over the past month, reflecting significant profit-taking since the October peak. Experts say the daily RSI is recovering into neutral-to-bullish territory, potentially supporting further upside. Key levels to watch include resistance around $93,000, which is also the prior consolidation area, and support at $84,000.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)