Bitcoin’s Disbelief Phase May Spark a Recovery Rally

Bitcoin is currently experiencing a period of ‘disbelief’, as traders remain cautious following recent market volatility. However, this phase may act as a catalyst for a strong recovery rally. Negative funding rates and short dominance in the derivatives market reveal lingering fear among investors, yet these factors could trigger a surge once the market shifts direction. On-chain data and past cycles suggest Bitcoin could rebound toward $113,000 to $126,000 if current support levels hold firm.