Bitcoin has recently reclaimed its Short-Term Conservative Cost Basis level of approximately $92,900, a significant indicator for market trends.

In the past week, Bitcoin has surged over 10%, outperforming traditional risk assets such as the S&P 500.

This price increase is largely attributed to improved macroeconomic sentiment, including expectations of U.S. tariff reductions.

Additionally, the Supply Percentage in Profit metric has risen to 87.3%, signaling better market health and increased investor profitability.

However, Bitfinex warns that market sentiment has not yet reached euphoric levels, suggesting a cautious outlook moving forward.

The coming weeks are crucial for Bitcoin, as its ability to sustain these gains will determine whether it can initiate a new rally or face a corrective phase.

Bitfinex also notes that Bitcoin is currently at a critical support level, with its future performance hinging on developments in the near term.

Notably, Bitcoin has re-entered the lower end of the $94,000 range, where it previously reached an all-time high in January.