Bitfinex says “extreme deleveraging” and other indicators as factors that could help Bitcoin hold its ground and potentially move higher.
Bitcoin could extend its recent rebound after posting an 8% daily gain on Wednesday, with crypto analysts pointing to signs that a local bottom may already be in.
“The combination of extreme deleveraging, capitulation among short-term holders, and early signs of seller exhaustion has created the conditions for a stabilisation phase and a relief bounce,” Bitfinex analysts said in a report on Tuesday.
The comments came shortly before Bitcoin (BTC) rallied nearly 8% on Wednesday, briefly pushing toward $94,000. At the time of publication, Bitcoin is trading at $91,440, according to CoinMarketCap.
