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Bitcoin recovers above $78,500

After a sharp sell-off, Bitcoin has shown a rebound and rose to the $78,500 level. However, analysts agree that this movement is more of a technical correction than a sustainable upward trend.

Bitcoin (BTC) and other major cryptocurrencies recovered late Monday, regaining some of the recent losses. Bitcoin, which fell to around $75,000 during the day, increased by 4.2% in the last 24 hours to $78,662. Ethereum (ETH) gained 5.86%, reaching $2,322. Other major altcoins also saw limited gains, but prices remain well below pre-drop levels.

ANALYSTS WARN: TECHNICAL REBOUND
Market experts note that the current rise is more of a technical correction than a sustainable rally. Vincent Liu, CIO of Kronos Research, said, "The rebound reflects buyings that close open positions after liquidations, oversold conditions, and rebalancing following forced sales. Due to liquidity concentration in large assets, we usually see the first recovery in BTC and ETH." Liu emphasized that while the movement could continue in the short term, without spot buying entries and macro liquidity improvements, it will remain a relief rally rather than a sustained trend.

The recent sell-off was triggered by the re-pricing of US interest rate expectations following hawkish signals regarding the Fed's monetary policy outlook.

THE BASIS OF THE RECOVERY IS QUESTIONED
Presto Research analyst Rick Maeda stated that the rebound reflects more of an improvement in overall risk appetite rather than a crypto-specific catalyst. Maeda said, "Following the initial sell-off driven by hawkish Fed pricing, the overall risk perception has improved. The recovery in US stocks and strong ISM data have encouraged risk-taking in markets. Since most of the policy shock has been digested, selling pressure has eased, and cryptocurrencies have mechanically risen along with other risky assets."

Bitrue research director Andri Fauzan Adziima also painted a cautious picture. Adziima said, "This relief rally is largely technical, driven by oversold levels around $74,500 for BTC. Without new catalysts like ETF inflows or macro easing, sustainability seems unlikely."

UPCOMING DATA ON THE AGENDA
Market participants are closely watching upcoming US employment data. Weekly jobless claims due Thursday and the non-farm payroll report on Friday are key short-term catalysts. Liu from Kronos Research commented, "Data below expectations could weaken bond yields and the dollar, supporting risky assets."