Cryptocurrency markets are rebounding from an overnight dip that saw Bitcoin go as low as $78300.

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Crypto traders are assessing the possibility of a short-term recovery after a steep decline in Bitcoin (BTC) from a high of $94,000 to a low of $78,300 overnight.

The cryptocurrency slid 19% in the past week, leading trader Altcoin Sherpa to ponder the chances of a rebound.

“Wonder how they’re going to spin this if we can't break out of this cycle of poverty in the short term for $BTC,” he said.

Wonder how they’re going to spin this if we can't break out of this cycle of poverty in the short term for $BTC

— Altcoin Sherpa (@AltcoinSherpa) November 28, 2023

However, traders also seem to be consistently misjudging the direction of Bitcoin, according to data from crypto analytics platform Santiment.

Mentions of $70,000-$75,000 were largely bearish, while those of $90,000-$95,000 were bullish.

The chart shows that when traders expected BTC to rise, it dropped, and vice versa.

“Maybe we should start a contrarian trader index,” Santiment suggested.

Meanwhile, trader Blockchainedbb noted that there was a major liquidity zone above the $107,000 level, which could pose resistance to any rally.

The next significant profit-taking area was around $110,000, he added.

More like 2025! Liquidity above 107k ! Around 110k ish is next major profit taking pic.twitter.com/LDM2mEVSMH

— Blockchained (@blockchainedbb) November 28, 2023

Finally, trader CrediBULL Crypto saw some relief after Bitcoin tagged $79,000, which was the last point of rejection.

He expected a base to form between $74,000 (HFT demand) and $94,000-$99,000 (local supply), setting the stage for a full reversal.

“Expecting a nice countertrend move back to the 94k-99k zone (local supply) where we’ll likely see another reaction and a final base to fully kickstart the next leg up.”