Crypto Market Rebounds 3.08% After Black Monday Crash

Just days after a catastrophic wipeout that erased over a billion dollars in crypto positions, the market is stirring back to life. The infamous “Black Monday” crash on April 7, triggered by aggressive new tariffs, sent shockwaves through global markets, including crypto. Over $1 billion in liquidations followed within 24 hours, triggering widespread panic and a mass exodus from risky assets.

Bitcoin (BTC) is now trading just shy of $80K at $79,905.69, up 2.74% in the last 24 hours, although it’s still down 3.63% over the week. While this climb doesn’t erase the sting of last week’s losses, it hints at resilience—and potentially, a floor forming beneath current price levels. Ethereum (ETH), too, has posted a modest comeback, now at $1,585.39 with a 2.28% daily gain. After days of red, even small green candles are being welcomed with relief across the board.

In the altcoin camp, the rally is spreading—though some coins still lag behind key psychological levels. XRP is up 3.65% to $1.90, but still hasn’t managed to breach the critical $2 mark. The coin remains weighed down by broader uncertainty and investor hesitation. Meanwhile, other major altcoins are enjoying stronger rebounds: Solana (SOL) is up 7.90% to $111.29, Dogecoin (DOGE) is up 6.16% trading at $0.1511, Cardano (ADA) is up 5.71% at $0.5917, and BNB is up 1.78% sitting at $561.80. Together, these gains have lifted the global crypto market cap to $2.53 trillion, a 3.08% increase in just 24 hours—a sharp contrast to the panic-driven sell-off of just a few days ago.

Despite the bounce, investors aren’t rushing back in with full confidence. The Crypto Fear & Greed Index sits at 19, a stark reminder that “Extreme Fear” still rules the emotional landscape. Traders remain cautious, worried that another macroeconomic shock—or further regulatory crackdowns—could trigger yet another downturn. Adding to the caution is the Altcoin Season Index, currently at 17 out of 100, which signals that Bitcoin remains firmly in control of the market narrative. Altcoins may be rising, but the ecosystem isn’t yet shifting into full-on risk mode.

The current rally feels more like a breath of relief than a full recovery. Analysts say we’ll need sustained momentum, stronger trading volumes, and some positive macro developments before calling this a true reversal. That said, crypto markets are unpredictable, and momentum can shift quickly. If Bitcoin holds above $80K and investor confidence starts to return, we could see altcoins begin their aggressive climbs. But if another geopolitical shock hits, or if trade tensions escalate, the relief rally might vanish just as fast as it appeared.

For now, though, all eyes are on Bitcoin’s next move. Will it reclaim its dominance and carry the market with it—or is this bounce just another bull trap waiting to snap? One thing’s for sure: the next few days will be critical. The recovery efforts of Bitcoin have been notable, with the digital currency experiencing a swift bounce-back after hitting a low of $74,434. However, the struggle to sustain the crucial $80,000 mark continues due to significant overhead supply. The daily chart shows bullish support above a crucial support level, extending from $75,637 to $76,462, coinciding with the 50% Fibonacci level near $75,500. The bounce-back suggests a potential extended recovery as buyers maintain dominance at this crucial support. However, due to intense overhead supply, the uptrend fails to reach the 61.80% level at $81,855.

The long wick formation in the intraday candle reflects buyers struggling to maintain momentum. Additionally, due to the prevailing downturn, the 50-day and 200-day simple moving average lines have given a negative crossover, signaling a “death cross” and triggering a sell signal for price action traders. However, the underlying support for BTC at the 50% Fibonacci level leads to a lower price rejection, hinting at a double-bottom pattern. The daily RSI line supports the possibility of a double-bottom reversal with a minor bullish divergence. Thus, technical indicators and price action analysis suggest a double-edged situation for Bitcoin.

The surge in volatility is also shaking up the Bitcoin derivatives market, with massive fluctuations in underlying sentiment. Massive liquidations have dropped Bitcoin’s open interest to $51.35 billion, marking a 0.99% drop in the past 24 hours. However, the funding rate remains positive at 0.0021%. Despite this, short positions have significantly increased over the past 12 hours. According to the Bitcoin long-to-short ratio chart, short positions have risen from 49.21% to 51.73%. This drop in the long-to-short ratio to 0.9331 signals a bearish sentiment. As a silver lining, over the past 24 hours, long volume has increased by 34% to reach $98.11 billion, while short volume remains at $97.43 billion, suggesting a significant recovery.

The increased volatility in Bitcoin prices due to global trade tensions has increased uncertainty in the financial and crypto markets. Currently, the BTC price action analysis suggests a potential double-bottom reversal. However, technical signals and the derivatives market point to the possibility of an extended correction. Hence, as Bitcoin fluctuates between the 50% and 61.80% Fibonacci levels, it marks a no-trading zone. A decisive close beyond this range will trigger an entry opportunity for traders. In the case of a bullish breakout, the 78.60% level signals upside potential toward nearly $92,000. However, an extended correction will likely test the $70,000 mark.