Bitcoin, Ethereum, XRP Jump as Rebound Gathers Pace. Where Cryptos Go Next.

Bitcoin rose Tuesday as it edged closer to the $90,000 level. (Hans Lucas/AFP via Getty Images)

Key Points

• Bitcoin traded at $87,541 early Tuesday, a 0.6% increase over 24 hours, and is up approximately 3% this week.
• The cryptocurrency remains 31% below its early October record high of $126,273.
• Smaller cryptocurrencies saw stronger rebounds, with XRP up 6.5%, Ethereum up 2.3%, and Solana jumping 4.6%.

Bitcoin climbed early Tuesday, nearing the key $90,000 level, as cryptocurrencies continued to rebound.

The price of Bitcoin was trading at $87,541 early Tuesday, up 0.6% over the past 24 hours according to CoinDesk data. The world’s largest cryptocurrency is up around 3% this week after hitting lows of around $82,000.

While that might be some crumb of comfort for investors, it is still 31% off its record high of $126,273 it hit in early October.

“Bitcoin has staged a strong counter-rally off $80,000—and who doesn’t love a good old-fashioned V-shaped recovery? For the first time in the drawdown, it feels like those holding Bitcoin shorts are the ones feeling the heat,” Pepperstone analyst Chris Weston said.

“A break of $90,000 seems more likely than not,” he added.

Smaller cryptos were enjoying a stronger rebound, with popular altcoin XRP rising 6.5% to $2.22, Ethereum climbing 2.3% to $2,906, and Solana jumping 4.6%.

If Bitcoin can break above $90,000, that could give the green light to a more sustained recovery.

Write to Callum Keown at callum.keown@dowjones.com