Bitcoin Rebounds Above $79,000 on Spot Demand
Bitcoin rebounded by more than $1,500 from its intraday low on Wednesday, reaching above $79,000 after dipping towards $77,600. The price action was fueled by spot demand rather than a surge in leveraged futures positions.
The bounce adds to a pattern developing around the upper-$77,000 area, where sellers can push Bitcoin lower but buyers have repeatedly appeared before declines accelerate.
A key risk is a weekly close below $78,300 followed by a failed bounce, which could signal that the $77K buyers are gone and liquidation-style selling returns. This would be similar to what happened in May, when Bitcoin previously reached about $82,800, fell back towards $78,300, and eventually broke lower.
However, some analysts believe that Bitcoin's ability to absorb pressure and recover without excessive leverage suggests a stronger foundation for another advance. Bitfinex's trading desk noted that the current market is driven by spot buying, with roughly $77,100 identified as support.