Bitcoin is showing early signs of recovery after plummeting in recent weeks. The world's largest cryptocurrency has rebounded from levels around $60,000 and is up modestly, giving investors some hope that the worst part of the recent correction may be over. But analysts say it is still too early to confirm that the market has fully stabilized.
At the time of writing, Bitcoin is up over 7% and trading at just under $70,000.
Recovery is seen, but confirmation is still needed
Bitcoin is already up more than 10% from its recent lows, which is a positive signal for the market. Still, experts explain that a stronger and more consistent rally is needed before traders can confidently say that a new uptrend has begun. Markets often exhibit short-term rebounds during corrections, and in some cases prices may fall again before a true recovery begins.
For this reason, many traders are keeping a close eye on how Bitcoin performs in the coming weeks. If buying demand continues to increase and prices continue to rise steadily, we could confirm that a meaningful bottom has formed.
Pay attention to the possibility of a rise in February
Once the correction phase ends, Bitcoin could see an even stronger rally in the second half of February. One of the key levels being watched is around $94,000, which is considered a major resistance area based on historical price movements. Heading towards that level would mean strong recovery momentum, although it may not happen right away.
Downside risks still exist
Despite the recent recovery, risks remain. If selling pressure returns, Bitcoin could fall further toward the $55,000 to $56,000 range, which is seen as the next key support zone.
For now, the market remains mixed. Investors are waiting for clear signs of sustained strength before making big moves, while long-term holders remain focused on Bitcoin's broader growth trends despite short-term volatility.
