TLDR
- Bitcoin rose 3.21% to $87,423 after reaching extreme oversold RSI levels that historically triggered recoveries
- XRP gained over 7% to $2.07 while ZEC surged nearly 20%, showing strongest performance among major cryptos
- Total crypto market cap increased 2.93% to $2.97 trillion with most top 20 assets posting gains
- Derivatives markets saw $218 million in liquidations over 24 hours as traders closed positions
- Bitcoin funding rates turned negative showing increased short positions, potentially setting up squeeze scenario
Bitcoin and the broader crypto market climbed higher today as the leading cryptocurrency bounced back from extreme oversold conditions. The recovery brought fresh momentum to digital assets after several weeks of downward pressure.
Bitcoin traded near $87,423 after rising roughly 3.21% from earlier lows in the session. Analyst Ali Martinez noted that Bitcoin entered extreme oversold territory on the RSI indicator earlier in the day. This technical level has previously triggered short-term recoveries in both 2023 and March 2025, according to Glassnode chart data.
The bounce comes after recent comments from Strategy’s Michael Saylor who reiterated his firm’s long-term commitment to Bitcoin holdings. The statement provided some support to market sentiment during the recovery phase.
Altcoins Join Recovery Rally
The wider cryptocurrency market followed Bitcoin’s lead higher. Total crypto market capitalization increased 2.93% to reach $2.97 trillion, based on CoinMarketCap data. The majority of top 20 digital assets recorded gains over the past 24 hours.
Ethereum, Solana, BNB, DOGE, ADA, and TRX all posted increases as selling pressure decreased. The gains marked a shift from the difficult trading conditions seen in recent weeks.
XRP and ZEC delivered the strongest performances among major tokens. XRP rose more than 7% to reach $2.07 in trading. ZEC surged nearly 20% during the session.
The privacy-focused coin ZEC has now risen more than 965% in 2025. It currently maintains one of the strongest year-to-date performances in the privacy token category.
The recovery occurred alongside liquidations in derivatives markets. CoinGlass data shows liquidations totaled approximately $218 million over the past 24 hours. These forced closures cleared out leveraged positions on both sides of the market.
Derivatives Market Shows Mixed Signals
Despite the price recovery, trader sentiment remains cautious. The Crypto Fear and Greed Index sits at 13, indicating extreme fear levels among market participants. Traders are monitoring whether the bullish momentum can continue in coming sessions.
New data from market analyst Ted Pillows reveals that Bitcoin funding rates have turned negative even as prices rebound. The negative rates indicate aggressive short positions being opened by traders betting on a potential pullback.
The same data shows falling open interest followed by a small recovery. This pattern suggests earlier liquidations cleared crowded positions before new shorts attempted to rebuild their exposure.
Pillows noted that Bitcoin could push higher if the market forces these short positions to close. He said a short squeeze scenario could develop before any attempt to fill the CME gap.
Attorney John Deaton expressed optimism about Bitcoin’s near-term prospects. He stated that Bitcoin could reach the $110,000 level before the end of the year. The negative funding rates and building short interest could fuel upward price action if short traders face losses on their positions.
