Relief rally? Bitcoin bounces after drop to just below $60,000

Is this what we’d call a relief rally? Bitcoin fell to just below $60,000 earlier this week before rebounding very strongly since Friday morning. At the time of writing, Bitcoin is once again trading for $70,000.

Trump rally

Bitcoin’s fall is making headlines worldwide. The Financial Times, CNBC, and CNN are calling it the end of the so-called Trump rally (the rise in Bitcoin’s price after November 2024) and are wondering where this fall will end. Bitcoin fallen to some 50% below its record high of October last year. On Thursday alone, Bitcoin dropped more than 13 percent to below $70,000.

That was already the biggest single-day drop since the collapse in November 2022, when Sam Bankman-Fried’s global cryptocurrency exchange FTX went bankrupt.

During morning trading in Asia on Friday, the largest cryptocurrency fell another 5 percent to a new low for the year of just under $60,000.

After hitting this level, Bitcoin quickly rebounded, suggesting significant strong support exists around this point.

However, breaking so many key support levels in a single week makes it technically uncertain whether the decline has been halted. February promises to come with a few very exciting days and weeks.