Bitcoin Retreats From Eight-Month High as Market Focus Shifts to $84,000 Threshold
Bitcoin's recent surge has slowed down as it retreated from an eight-month high during Asian trading hours on Tuesday. The cryptocurrency had surged over 13% in four days, reaching a peak of $87,381 during U.S. trading hours, but then fell to around $85,500.
This pullback is significant because it shows that the market has rebounded by approximately $10,000 from last week's low, indicating a shift in momentum. The rebound has convinced traders that the bear market phase is over and the path of least resistance is upward, as stated by Rich Rosenblum, co-founder of cryptocurrency market maker GSR.
However, there are still headwinds to consider. Crude oil prices hover near $100 per barrel, and while U.S. Treasury yields have eased somewhat, they still linger at elevated levels. Additionally, Bitcoin remains below its mid-January 2026 peak of $97,000, and retail investor enthusiasm has yet to reignite.
Some analysts are cautiously optimistic, pointing out that the recent rally has been driven by strong buying momentum fueled by short liquidations. The number of call contracts for Bitcoin on Deribit is close to 320,000, while the number of put contracts exceeds 169,000, indicating a dominant bullish sentiment in the market.