Bitcoin's Rebound Hits Wall at $81,000 Amid Questions Over Genuine Buying

Bitcoin's explosive rebound has hit a wall at around $81,000, causing some to question whether the recovery has genuine buying behind it.

The cryptocurrency reached an intraday high of $81,265 on Tuesday, its strongest level in three months, before retreating back towards $79,000 on Wednesday.

Despite gaining about 24% since August 17, the rejection came after a rapid move fueled partly by forced short covering.

CryptoQuant research head Julio Moreno remains constructive, saying 'basically all metrics are pointing to the initial phase of a new bull market', but noted that Bitcoin still needs to move above its 365-day moving average near $83,000 for stronger confirmation.