Bitcoin powered back above $91,000 on Tuesday, and it wasn't just retail enthusiasm driving the move. This time, institutional validation played a starring role as Bank of America launched formal Bitcoin coverage and Vanguard quietly opened up crypto ETF trading for its massive client base.

The recovery marks a swift turnaround from the strange December 1st selloff that briefly rattled markets. Here's where the major cryptocurrencies stood:

Market Action and Casualties

The volatility took its toll on leveraged positions. According to Coinglass data, 120,612 traders were liquidated in the past 24 hours for a combined $411.25 million. That's what happens when markets move fast in either direction—overleveraged bets get washed out quickly. On the upside, top gainers included Pudgy Penguins, Sui, and SPX6900.

What Traders Are Watching

Daan Crypto Trades pointed out that Bitcoin cleanly swept its monthly candle high, reinforcing a pattern where strong moves at the start of a new month tend to see those levels retested or taken out quickly. That's exactly what played out with the fast reclaim above $91,000.

Nebraskangooner emphasized that BTC now needs a daily close above $90,360 to open the path toward the still-untapped upper resistance zone. That's the level to watch for confirmation of continued momentum.

Michael van de Poppe highlighted Bitcoin's sharp recovery following the unusual December 1st drop, calling the structure "strong." A decisive break above $92,000 would likely confirm continuation toward a new all-time high and potentially a run toward the psychologically significant $100,000 level.

Altcoin Sherpa compared the bounce to a milder version of March's price action—an aggressive selloff followed by an equally strong reversal. He believes this could mark a relative bottom, suggesting the worst may be behind us for now.

Why This Rally Feels Different

The institutional angle matters here. Bank of America isn't just dipping a toe in the water—they're recommending up to 4% crypto allocations to clients. Meanwhile, the SEC is working to position the US as a center for "digital asset innovation" with a proposed "Innovation Exemption" framework. These aren't the moves you see in a market headed for irrelevance.

Whether Bitcoin can hold these gains and push through $92,000 remains to be seen, but the combination of institutional backing and strong technical recovery has traders feeling optimistic about what comes next.