Bitcoin Rebounds From 21-Month Low Near $57K, But Data Urges Caution
Bitcoin bounced after touching a 21-month low, with bulls pushing toward $60K. Leverage data suggests the bottom may not be confirmed.
Bitcoin staged a recovery Friday after plunging to its lowest price in 21 months, with bulls mounting a defense and pushing the cryptocurrency back toward the critical $60,000 threshold. The sharp bounce drew immediate attention from traders watching whether the $57,000 zone would hold as a meaningful floor or prove to be a temporary pause in a deeper downturn.
Despite the rebound, on-chain leverage data is flashing warning signs that temper optimism. When leverage remains elevated after a price drop, it typically signals that speculative positions have not been fully flushed out — a condition that historically leaves markets vulnerable to another leg lower if sentiment shifts again.
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The $60,000 level carries significant psychological and technical weight. Bulls need to reclaim it convincingly and convert it from resistance back into support before analysts can declare the sell-off over. Until that happens, the market structure remains fragile, and any failure to hold higher ground could invite renewed selling pressure.
The 21-month low marks a substantial pullback from Bitcoin's all-time highs and raises broader questions about near-term momentum heading into what has traditionally been a volatile period for crypto markets. Traders are closely monitoring funding rates, open interest, and spot demand to gauge whether genuine buying conviction is returning or whether the bounce is purely technical.
Continue reading at Cointelegraph.
