Bitcoin Nears $90K as Crypto Market Shows Strong Recovery and Gains

Altcoins including Ethereum, XRP, and Solana rise following US and China optimism and expectations of a possible Fed rate cut.

Bitcoin, the largest digital asset in the world, bounced from a major tragedy that saw it fall to a seven-month low, inching near to $90,000 levels. Bitcoin was rising 0.2% on Tuesday at $87,975, and other alternative coins were following the trend.

Bitcoin increased by 2% over the last day while Ethereum increased 4%. XRP, BNB and Cardano the three main altcoins, rise by 9%, 3%, and 4% respectively. In the past day, Solana, Dogecoin, and Hyperliquid have all increased by up to 5%. CoinMarketCap states that the global crypto market value increased by 1.02% to 3 trillion.

CoinSwitch Markets Desk stated that the US share markets rebound caused Bitcoin to rise around $89K, and positive environmental developments between the US and China added to the enthusiasm. BTC may try again to break through the $90K mark, which has served as an important barrier in recent sessions, if current momentum remains. In addition, strong short-squeeze liquidity above current levels, especially around $89.5K to $90K, appears in BTC's liquidation heatmap, indicating that the price may rise to clear these zones. Liquidity is presently around $85K and $86K on the downside, suggesting that a drop may briefly enter this area before rebounding.

Ethereum has also bounced back, increasing from its previous swing low by around 13 percent. A stronger technical barrier is located near $3,200, while the $3,000 level can act as a psychological challenge. Long-term holders have sold over 800,000 BTC in the last month, based on Deutsche Bank, indicating strong profit-taking since the October peak. The daily RSI is rebounding into neutral to bullish territory.