Bitcoin Rebounds 19% After COVID-19-Inspired Drop and FTX Crash

Bitcoin rebounded to $71,673 on Bitstamp, a more than 19% gain after a dramatic drop below $60,000 the previous day. However, the leading cryptocurrency has yet to consolidate above this level on the daily timeframe, raising questions about the sustainability of the recovery.

Martin Leinweber, Director of Digital Asset Research and Strategy at European index provider MarketVector Indexes, published an analysis showing that Bitcoin has fallen 2.88 standard deviations below its 200-day simple moving average (SMA). In 10 years of data collection, this has never happened—not during the COVID-19 pandemic, not during the FTX crash.

Analyst Crypto Candy noted that Bitcoin is moving within expectations. As he noted earlier, after a drop to the $61,000–$58,000 range, a rebound to $70,000–$67,000 could have been expected, which is precisely what happened. Although BTC reached $71,000, it failed to close above that level on the daily timeframe.

AI Opinion
History shows that extreme statistical deviations in Bitcoin often precede prolonged periods of consolidation rather than instant reversals. A deviation of 2.88 standard deviations from the 200-day moving average is unprecedented, not seen even during the most dramatic moments of the last decade. This suggests that the market is facing fundamentally new conditions that go beyond its usual cycles.
#btc $ETH #usdt #gold #silver. #ltc $GT $XRP