Weak Bounce Suggests Profit-Taking Might Send Bitcoin Below $90K

Bitcoin Chart H4 – Sellers Return Below $95K

The rally gained momentum after pausing above $70,000, bolstered by renewed confidence following Donald Trump’s electoral victory. This event gave Bitcoin a fresh push, contributing to its nearly 400% gain over the past year. However, the $100,000 level has proven to be a psychological hurdle, prompting many investors to lock in profits, which has capped the cryptocurrency’s upward momentum for now.

S&P 500 and Bitcoin Bounce Fades

The S&P 500 saw a strong recovery today, rising 25 points (0.5%) to hit a session high after an earlier pullback. Similarly, Bitcoin mirrored this pattern of recovery, rebounding from its daily low of $91,500 to $94,500. However, the cryptocurrency’s gains were fleeting, with its price slipping back to $92,600, marking a $2,000 decline in late trading.

Broader Market Implications

Bitcoin’s recent behavior underscores its volatility and the cautious sentiment surrounding major milestones like $100,000. While it remains an attractive long-term investment for many, profit-taking and market uncertainty continue to weigh on short-term movements.

Meanwhile, the S&P 500’s resilience reflects broader optimism in traditional markets. As both markets navigate contrasting drivers—crypto reacting to speculative movements and traditional equities responding to economic and geopolitical signals—investors remain alert for further shifts in momentum. Bitcoin’s ability to hold above $90,000 will be a key focus in the coming days, alongside equity market reactions to upcoming economic data.