Opinion: Bitcoin rallies to $87,500, market structure still "fragile"

On November 24th, analysts said that Bitcoin has recovered from the decline that triggered a massive liquidation and sell-off earlier this week, and is currently trading at around $87,645, up 1.8% in the past 24 hours. Other cryptocurrencies also rallied, with ETH up 0.5% to $2,834, XRP up 2.65% to $2.09, and Solana up 2.5% to $133. The overall crypto market has gained 1% in the past 24 hours. Analysts described the price rally as a "post-purge rally," but noted that the move lacked sustained momentum. Vincent Liu, CIO of Kronos Research, said that Bitcoin's current movement is similar to a "post-purge rally", with shallow liquidity, fragmented trading flows, buying is looking for stability, and long-term holders are accumulating. He expects Bitcoin to consolidate in a narrow range of $85,000 to $90,000, as liquidity is shallow and stop-loss orders are being cleared. Bitcoin is consolidating after the deepest correction of the cycle, and it is positive to stay above $86,000 in the short term, but the market structure remains "fragile", said Rachael Lucas, crypto analyst at BTC Markets. Lucas pointed out that if it can continue to stand above the 88,000 dollar, it will confirm the bottoming process of Bitcoin; otherwise, if it fails to do so, there is a risk of falling to $80,000. Lucas said that short-term traders remain cautious and driven by capital flows, closely monitoring capital rates and liquidation levels for signs of stability. For institutions, this is an asset "rotation phase rather than an exit", and ETF outflows reflect risk management rather than abandonment.