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Bitcoin (BTC), currently trading around $88,000 (approximately PKR 24.6 million), is showing early signs of stabilisation after hitting fresh 2026 lows near $86,000. However, traders are largely dismissing the recent rebound, warning that further downside may follow as the US dollar heads toward a potential long-term bottom.
Bitcoin recovered slightly after Wall Street opened on Monday, bouncing back above $88,000 following a weak weekly close. Despite the move, market sentiment remains fragile, with many analysts believing the recovery is corrective rather than a confirmed reversal.
Crypto trader Killa said the upside may be limited, stating that Bitcoin could extend only toward the $89,000 to $91,000 range before facing renewed selling pressure. The cautious outlook reflects broader uncertainty across global markets, including concerns over US trade policy, Japan’s financial signals, and the upcoming Federal Reserve interest-rate decision.
Some analysts remain optimistic, pointing to declining strength in the US dollar index (DXY). Trader BitBull highlighted that historically, Bitcoin has formed major bottoms whenever the DXY dropped below the 96 level.
“This is a very crucial chart for Bitcoin holders,” BitBull said, noting that past BTC rallies coincided with sharp dollar weakness. With the DXY now under pressure again, expectations are growing that Bitcoin could be approaching a macro bottom rather than entering a structural breakdown.
Despite hopes tied to dollar weakness, macroeconomic risks continue to dominate sentiment. Analysts have flagged the risk of a potential US government shutdown later this month, which previously triggered heavy drawdowns in crypto markets.
QCP Capital warned that Bitcoin may continue to trade sideways in the short term until there is greater clarity on fiscal and monetary developments. According to the firm, uncertainty is likely to keep traders cautious rather than aggressively bullish.
More encouragingly, research from market provider IG suggests that Bitcoin’s core demand remains strong.The firm noted that long-term investors appear willing to absorb supply at lower levels, treating the recent decline as a macro-driven correction rather than a sign of deeper weakness.
IG analysts said Bitcoin is currently avoiding a structural breakdown, with key resistance seen near $94,000 and $100,000, while $86,000 remains a critical support level to hold. They added that BTC’s next major move will depend on whether broader market conditions stabilise in the coming weeks.
