Bitcoin has experienced a resurgence in price after a significant drop below $82,000 last Friday. This renewed upward trend suggests that the cryptocurrency market may be nearing a bottom following weeks of volatility fueled by macroeconomic uncertainties and fluctuating Federal Reserve expectations. As selling pressure subsides, analysts are predicting Bitcoin’s recovery could continue to climb. 5 key insights suggest this shift in sentiment: Bitcoin’s recent bounce points towards a possible local bottom, bolstered by declining sell-off pressure, as market sentiment shifts from risk-off behavior to cautious optimism. Key factors driving this recovery include declining selling pressure and the potential for Federal Reserve rate cuts. This could lead to increased liquidity injections, which may positively impact risky assets like Bitcoin and other cryptocurrencies. While a second wave of selling might occur during this downturn, it’s likely to be weaker and signal exhaustion among sellers. A sustained hold at previous lows could mark a crucial turning point, potentially shifting control back to bullish traders. With the probability of a December rate cut by the Federal Reserve now at nearly 70%, according to CME Fed Watch Tool, market expectations are shifting significantly toward this possibility. This could further boost Bitcoin and other risk assets. Additionally, upcoming liquidity injections from the Fed might fuel market momentum. Historically, periods of quantitative easing have preceded significant bullish runs in cryptocurrencies, strengthening the belief that a supportive macroeconomic environment can lead to more gains. As traders await policy signals and anticipate future market trends, it remains crucial to monitor the evolving dynamics of this dynamic market.