Cryptocurrency Market Rebounds After Three-Day Slump

NEW YORK — The cryptocurrency market snapped its three-day losing streak on Friday, gaining 3% to reach a $3.2 trillion valuation. Bitcoin, the leading cryptocurrency, struggled to retake the $95,000 support level, while exchange-native tokens like Binance Coin, Uniswap, and Bitget rallied, signaling early rebound indicators.

Solana, another major cryptocurrency, established firm support above $180 as the market sell-off subsided. However, recent reports suggest that Solana’s proposed network update could introduce further downside risks. Bitcoin, Ethereum, and XRP also saw slight gains on Friday, despite erasing significant value over the past week.

Experts predict heightened volatility for Bitcoin and Ethereum in the coming week, with a potential correction in Bitcoin expected by the first quarter of 2025. Bitcoin’s price recovered slightly to trade around $94,700 on Friday after a nearly 6% decline earlier in the week. U.S. Bitcoin spot Exchange Traded Funds (ETFs) showed signs of mild recovery, with a total net inflow of $462.2 million as of Thursday.

Adam Lemon, Chief Analyst at DailyForex, noted that the technical picture for Bitcoin has turned increasingly bearish. “The price is printing a series of lower highs and heading towards a key support level above $91,000,” Lemon said. He added that a breakdown below $91,796 could trigger a rapid decline, while a bullish bounce at this level remains a possibility, albeit not recommended.

The cryptocurrency market’s rebound comes amid a challenging environment for risk assets, with a strengthening U.S. dollar and broader market sell-offs. Lemon emphasized that sustained price increases for Bitcoin are unlikely under current conditions. “In this environment, it is practically impossible for Bitcoin to make a sustained and meaningful rise in price,” he said.

As the market navigates these fluctuations, traders are advised to monitor key support and resistance levels closely. The coming days will be critical in determining whether the rebound signals a major breakout phase or a temporary recovery.