Bitcoin rebounded above $81,000 on March 11 as US stock futures staged a relief rally following a significant sell-off that had sent BTC to new four-month lows. On this day, Bitcoin saw daily gains approaching 4%, coinciding with a tough trading session on Wall Street, where the S&P 500 and Nasdaq Composite dropped by 2.7% and 4% respectively. Market analysts remarked on the potential for a short squeeze, suggesting that markets had entered an extreme fear phase, with notable readings from the VIX volatility index indicating an 89% chance that the recent lows could be the market's bottom. While some traders indicated a bullish divergence in the BTC price action, others maintained a more cautious outlook, suggesting that Bitcoin was unlikely to reclaim all-time highs in the midst of broader economic challenges. Notably, concerns surrounding a recession continued to loom over all risk-off assets, including cryptocurrencies. The article emphasizes the imperative for investors to conduct their own research given the associated trading risks.

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