Bitcoin (BTC) climbed back above the $93,000 level this week as improving liquidity conditions and a major shift in institutional policy helped stabilize market sentiment following sharp volatility.
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The move follows a month-long slide that erased nearly 20% from recent highs and raised questions about whether the broader uptrend was losing strength. Consequently, about $250 million in BTC short positions have been liquidated.
BTC's price gains some momentum on the daily chart. Source: BTCUSD on Tradingview
Institutional Access Expands as Vanguard Lifts ETF Ban
The most notable catalyst for the rebound came from Vanguard, which reversed its long-standing ban on Bitcoin ETFs. The decision immediately opened access to tens of millions of retail accounts and allowed products such as BlackRock’s IBIT to trade on the platform, generating more than $1 billion in volume on day one.
The policy shift triggered a rapid surge in demand and helped fuel more than $400 million in short liquidations as Bitcoin jumped from the mid-$88,000 area to above $93,000 within hours.
Analysts note that several major firms, including Robinhood and Fidelity, added significant BTC exposure during the session. Combined with stablecoin issuers expanding supply in recent weeks, liquidity across the crypto market has broadened.
Macro Shifts and Technical Levels Support the Recovery
The rebound coincided with the U.S. Federal Reserve ending its quantitative tightening programme and injecting fresh funds into short-term markets. Repo facility usage also increased, improving liquidity for risk assets. Traders now assign high probability to a rate cut at the Fed’s December meeting.
Across the market, major assets followed Bitcoin higher. Ethereum traded near $3,000, Solana reached $142, and XRP climbed back above $2.18. Market indexes tracking large-cap cryptocurrencies rose around 7%, while the Crypto Fear & Greed Index moved off extreme fear levels.
Technical indicators are showing early signs of stabilisation. Analysts highlight the $86,000–$88,000 range as a key support zone that has held through repeated tests in recent months. Bitcoin is also pressing against resistance between $92,500 and $94,000, forming an ascending triangle pattern.
Renewed $100K Bitcoin Targets, but Debate Over Trend Strength Remains
Despite the strong bounce, analysts remain divided on whether Bitcoin is entering a renewed expansion phase or simply retracing after a sharp correction.
Some warn that deeper downtrends historically unfold over longer periods. Others argue that rising institutional participation and on-chain activity resemble previous mid-cycle resets rather than the start of a prolonged decline.
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For now, BTC’s ability to maintain levels above $92,000 is viewed as critical. A sustained move higher would keep $100,000 firmly in focus, while failure to break resistance could send the market back into the high-$80,000 range.
Cover image from ChatGPT, BTCUSD chart from Tradingview
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