Opinion: Bitcoin rebounds to $87,500, market structure remains "fragile".

According to analysts, Bitcoin has recovered from the slump that triggered massive liquidations and sell-offs earlier this week, and is currently trading at around $87,645, up 1.8% in the past 24 hours. Last Friday, Bitcoin fell to around $81,000.

Other cryptocurrencies also rebounded, with ETH rising 0.5% to $2,834, XRP rising 2.65% to $2.09, and Solana rising 2.5% to $133. The overall crypto market rose 1% in the past 24 hours.

Analysts described the price rebound as a "post-flush bounce," but noted that the move lacked sustained momentum.

Vincent Liu, Chief Information Officer at Kronos Research, stated that Bitcoin's current movement resembles a "cleansing bounce," characterized by shallow liquidity, fragmented trading flows, buying pressure seeking stability, and long-term holders accumulating positions. He anticipates Bitcoin will consolidate within a narrow range of $85,000 to $90,000 due to the low liquidity and the clearing of stop-loss orders.

BTC Markets crypto analyst Rachael Lucas stated that Bitcoin is consolidating after experiencing its deepest pullback in this cycle, and holding above $86,000 in the short term is positive, but the market structure remains "fragile." Lucas pointed out that if it can continue to hold above $88,000, it will confirm Bitcoin's bottoming process; conversely, if it fails to do so, there is a risk of it falling to $80,000.

Lucas stated that short-term traders remain cautious and driven by fund flows, closely monitoring funding rates and liquidation levels for signs of stabilization. For institutions, this is currently a phase of asset rotation rather than exit; ETF outflows reflect risk management rather than abandonment. (TheBlock)