Bitcoin and Ethereum Steady — But Derivatives Show Crypto Traders Expect More Downside

The​‍​‌‍​‍‌​‍​‌‍​‍‌ digital currency bitcoin had its value soar recently to more than 90,000 US dollars, giving people the hope that it was going to recover. However, the majority of traders still feel skeptical. The price of bitcoin stands approximately 27–30% lower than the one in October.

This limited recovery has activated the warning signal among analysts. Some of them even express that this rally might disappear very soon. They also report new signs in the derivatives markets, which indicate that the investors are preparing for a decrease in the market.
If the bearish market emerges, Bitcoin may fall back to around $65,000. That would make a huge landing of the recent highs, a drastic change that would surprise the bulls who anticipate a long-term upward trend.

Additionally, the major cryptocurrencies didn’t have to go through a downtrend to follow bitcoin’s modest rebound, and all of them gained during this period of time. Ethereum and XRP, along with some other altcoins, got increased, thus market sentiment was improved.

Unfortunately, the situation is still quite fragile. High volatility and unclear angles of the future path create a very unsettling atmosphere. If investors get crashed, this recovery could turn to be an illusion whose result would be reversed fast. Hence some traders are keeping an eye on the situation and are prepared to make their moves if there is any indication of weakness.

Market watchers argue that this rally could be just a temporary trading activity and should not be taken as a long-term momentum change. The difference between the recent fluctuating and the record highs of October shows how sensitive these digital assets are to market sentiment, liquidity flows, and macroeconomic conditions.

At the moment a great number of people view Bitcoin’s latest rally as very fragile. Traders and investors, only, the latter, are warned to be cautious. The potential for profit is there, but so is the risk of a steep drop. The following days or weeks could turn out to be very important whether this rebound is just a short-term bounce or the beginning of a longer-term ​‍​‌‍​‍‌​‍​‌‍​‍‌recovery.