Bitcoin Stuck Below $90,000: Is Even A Dead Cat Bounce Too Much To Ask?

Bitcoin's (CRYPTO: BTC) briefly spiked above $90,000 on Monday morning, only to pull back to around $87,000, raising questions about whether a short-term rebound is realistic.

What Happened: Crypto chart analyst Ali Martinez said Bitcoin could see a short-term bounce driven by extreme fear and oversold conditions, likening the setup to a classic "dead cat bounce" after a prolonged decline.

However, broader on-chain signals remain weak.

Net capital flows have turned negative for the first time in nearly two years, falling below –$4.5 billion, while Bitcoin ETFs have recorded nearly $1 billion in outflows over the past two weeks, pointing to reduced institutional exposure.

Martinez warned that any near-term rally is likely being fuelled by leverage rather than spot demand, increasing the risk of trapping late buyers and setting the stage for another leg lower.

Also Read: Bitcoin Rejected At $90,000 As Ethereum, XRP, Dogecoin Tread Water

Why It Matters: Martinez noted that on the four-hour chart, Bitcoin is consolidating within a triangle pattern, suggesting a potential 15% move in either direction.

Separately, Bitcoin network activity has dropped 42.6% since 2021, underscoring its shift from a peer-to-peer payment system toward a store-of-value narrative.

The Kobeissi Letter highlighted that Bitcoin dropping $3,000 drop in just six hours was triggered by the liquidation of roughly $100 million in leveraged long positions shortly after prices touched $90,000.

Meanwhile, trader Jelle compared Bitcoin's current structure to prior local bottoms, characterized by sideways price action above key support, bullish divergence on the three-day chart, and a bullish three-day MACD crossover—raising the question of whether Bitcoin is preparing to reclaim lost ground.

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