Bitcoin is back above the $90,000 mark after a sharp intraday reversal that caught traders off guard and erased a portion of the recent sell-off.
- Bitcoin reclaimed $90K after a sharp intraday rebound.
- $147M in short liquidations helped drive the surge.
- Holding $90K could shift momentum toward altcoins.
The move follows a volatile 48 hours where the cryptocurrency fell toward the mid-$87,000 zone before buyers stepped in with force, triggering a surge of more than 3% and pushing BTC into the psychological $90K territory once again.
The global market cap for digital assets has also firmed up to nearly $1.8 trillion, supported by a rise in risk appetite across the sector. Trading volume remains high at more than $74.5 billion over the past 24 hours, suggesting that market participants are re-entering positions rather than waiting on the sidelines.
Liquidations Flip Sentiment
Over $181.8 million in Bitcoin positions were flushed out, according to data from Coinglass – most of which were shorts — $147.52 million, compared to $34.3 million in long positions. After weeks of continuous selling, the short reset provided bulls with enough fuel to regain control of price action.
Technical indicators also support the bounce. On the 4-hour chart, RSI has moved back toward 57, reclaiming the neutral-to-bullish zone, while the MACD histogram has begun shifting upward, signaling a reduction in bearish momentum for the first time since late November.
A fresh catalyst also emerged from U.S. markets. Bitcoin saw an immediate 6% jump at the opening bell following the decision to lift the earlier Vanguard ban on Bitcoin ETFs. Trading enthusiasm was evident, with more than $1 billion in IBIT volume recorded in the first 30 minutes.
THE VANGUARD EFFECT: Bitcoin jumps 6% right around US open on first day after bitcoin ETF ban lifted. Coincidence? I think not. Also $1b in IBIT volume in first 30min of trading. I knew those Vanguardians had a little degen in them, even some of the most conservative investors… pic.twitter.com/OKyihvEqqD
— Eric Balchunas (@EricBalchunas) December 2, 2025
Analysts say the inflow suggests that even typically conservative retail and institutional investors are beginning to allocate to spot Bitcoin products now that access barriers have been removed.
Analysts Eye a Potential Altcoin Rotation
According to well-known trader Michaël van de Poppe, Bitcoin may be acting as the trigger-point for a broader market rotation. He argues that a convincing break above $90K could pave the way for an altcoin-led phase, rather than Bitcoin continuing to dominate inflows.
$ARB has the same thesis here.
The markets need to wait for #Bitcoin to be waking up and break the $90K level.
If that happens, then I would assume we’re going to see more strength in #Altcoins rather than Bitcoin. $ARB remains on my list. Massive bullish divergence ready to… pic.twitter.com/Jg7lNCrduy
— Michaël van de Poppe (@CryptoMichNL) December 2, 2025
In his view, assets like Arbitrum (ARB) are showing early signs of bullish divergence, suggesting that many altcoins could soon outperform Bitcoin — but only if BTC holds above the crucial $90K resistance level.
What Happens Next?
The outlook now hinges on whether Bitcoin can establish $90,000 as a new support level rather than a temporary rally peak. If bulls defend this price zone during the next retest, traders expect a renewed push toward the next major resistance cluster in the $92K–$95K range. Failure to hold, however, could reopen the door to the mid-$80K region many analysts have identified as the strongest liquidity pocket.
For now, confidence has returned — but the market remains highly sensitive to volatility spikes, leverage positioning, and short-term sentiment shifts.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/market/bitcoin-reclaims-90000-here-is-why-traders-are-turning-bullish-again/