Bitcoin’s inability to quickly reclaim higher levels could spell a difficult stretch ahead, according to one analyst, after the cryptocurrency endured a dramatic intraday reversal on Tuesday.
The world’s largest digital asset slid to a 14-month low before staging a sharp rebound as turmoil in U.S. tech stocks rattled broader markets. Bitcoin fell to $72,900 during early U.S. trading—its weakest level since November 2024, when Donald Trump won the presidential election—before rebounding about 5% to near $76,800. The recovery later lost momentum.
Ether followed a similar pattern, surging as much as 10% from session lows to trade above $2,300 before surrendering part of those gains, according to CoinDesk data.
The bounce coincided with news that U.S. lawmakers reached an agreement to end the partial government shutdown, providing near-term relief for risk assets. Sentiment also improved after Nvidia CEO Jensen Huang appeared on CNBC and dismissed speculation about tensions between Nvidia and OpenAI.
“There’s no controversy at all. It’s complete nonsense,” Huang said, adding that Nvidia plans to participate in OpenAI’s next funding round. His comments helped soothe investor nerves amid growing uncertainty around OpenAI, a central pillar of the AI-driven tech rally.
Despite the rebound, the earlier selloff inflicted significant damage across crypto derivatives markets. Total liquidations reached $740 million over the past 24 hours, according to CoinGlass. Long positions accounted for the bulk of the losses, with $287 million in bitcoin longs and $267 million in ether longs wiped out.
Key technical levels breached
From a technical standpoint, bitcoin’s slide below the April 2025 “tariff tantrum” lows marked an important breakdown, increasing the risk of further downside.
Still, Benjamin Cowen, founder of Into The Cryptoverse, said extreme bearish sentiment could set the stage for a short-term countertrend rally. He noted that bitcoin has historically bounced after sweeping prior lows.
Cowen cautioned that if such a rebound fails to materialize, the market could be in for a prolonged downturn. “If bitcoin doesn’t bounce soon, it could be one hell of a midterm year,” he said, pointing to previous bear markets in 2018 and 2022, both of which coincided with U.S. midterm elections.
“The bear narrative has been very strong for some time,” Cowen added in a post on X. “That usually creates the conditions for a relief rally that gives bulls some breathing room—at least temporarily.”
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