Bitcoin Surges Again: Is the Rebound to $87,000 a Long Opportunity or a Short-Term Trap?

Recently, the cryptocurrency market has once again experienced fluctuations - Bitcoin dropped nearly $82,000 due to a wave of selling, but then rebounded strongly, returning to around $87,000. This reversal has prompted the market to re-examine Bitcoin’s trajectory: is it the new starting point of a bull market, or a short-term “illusion”?

Recent Trend Overview

In recent days, the price of Bitcoin has experienced extreme volatility—plummeting to $82,000 before quickly rebounding, briefly surpassing the $88,000 mark overnight, but ultimately retreating and stabilizing around $87,000. This “rollercoaster” trend has led to a surge in the number of market participants getting liquidated, while also intensifying the sentiment of caution and wait-and-see.

Analysis of Technical and Funding Factors

• Support and Rebound Mechanism: The $82,000–$83,000 range is considered a key support, with bulls positioning here to build a price底.
• Short squeeze and funding rate changes: Recent reports indicate that the Bitcoin funding rate has turned negative, suggesting increased pressure on shorts. If shorts are forced to cover, it will drive prices further up.
• Market sentiment recovery: After experiencing a round of panic selling, the rebound has strengthened market confidence, leading some medium to long-term investors to re-enter the market, thus forming a certain level of price support.

Long and short power struggle: Who will dominate the next wave of direction?

The current market is in a tug-of-war between bulls and bears:

• Bullish logic: If buying continues and major funds no longer sell, Bitcoin is expected to challenge $90,000 and even open higher space.
• Shorts and Risks: If market confidence is insufficient, or the macroeconomic/liquidity environment deteriorates, Bitcoin may fall back again. If it breaks below $82,000, it may enter a deeper correction.
• In addition, the short-term liquidation wave, the influx of leveraged funds, and the increased market volatility make each rebound or pullback accompanied by significant risk.

Advice for Ordinary Investors

For those who are optimistic about Bitcoin in the long term, this could currently be seen as a relatively good “low-position entry” opportunity; however, if you prefer a stable or short-term approach, you should be cautious. Suggestion:

• Set the psychological and actual stop-loss lines, and do not blindly chase highs.
• Control your position size to avoid excessive exposure to high leverage or borrowing.
• Pay attention to key price levels —— $90,000 (potential resistance) and $82,000 (key support) —— adapt flexibly to market conditions.