"Crypto rebounds after panic selling…Bitcoin and XRP bounce, but a trend reversal is still uncertain"

The crypto-asset (cryptocurrency) market, which had been dampened by a sharp wave of selling, has staged a short-term rebound. Bitcoin (BTC) and major altcoins rose in tandem, but caution persists over whether the broader market has truly shifted into a new trend.

According to crypto-focused outlet Coinpedia on the 7th, Bitcoin rebounded after recent panic selling and briefly reclaimed the $71,000 level intraday. Earlier, Bitcoin had slid to around $60,000, sharply worsening investor sentiment. In the process, the Crypto Fear & Greed Index fell to 5, signaling an extreme fear phase similar to the COVID-19 shock to financial markets or periods following the collapse of major exchanges.

Altcoins also showed strength during the short-term rebound. Ethereum rose about 9% from its low, and Solana climbed more than 14%. XRP posted a relatively standout move, at one point surging more than 20% during the rebound. However, prices remain well below recent highs, making it difficult to say the market has structurally stabilized.

In the market, the rebound is widely seen as a technical bounce driven largely by short-position liquidations from oversold levels and short-term liquidity inflows. The increase in stablecoin issuance over the past several days is also cited as a factor that may have provided near-term price support.

In XRP’s case in particular, buying by large holders is believed to have underpinned the rebound. On-chain data show a sharp increase in transactions of $100,000 or more, and the number of active network addresses also rose significantly in a short period. Some in the market argue that whale accumulation during a panic phase could be interpreted as a signal of a short-term bottom.

Still, analysts say Bitcoin has yet to show signals sufficient to confirm a medium- to long-term trend reversal. While short-term indicators are flashing buy signals, there is no clear reversal signal on a weekly-chart basis. Past cases show that after an initial rebound, volatility or additional pullbacks often followed.

The outlet reported that “the market sees Bitcoin potentially testing the $75,000–$80,000 range in the near term, and views whether it can hold above $80,000 as a key inflection point that will determine the next direction.”