Bitcoin BTC$64,903.72 reclaimed $65,400 early Wednesday, as a weaker U.S. dollar and a risk-on tone in Asian stocks gave crypto markets their first sharp rebound in weeks.
The broader crypto market cap fell to $2.19 trillion earlier this week, virtually retesting the lows reached during the February 5 crash. This proximity is what makes the current movement interesting.
If the level holds, the market expects a classic “double bottom” with around 10% upside potential, according to Alex Kuptsikevich, chief market analyst at FxPro. If not, he warned, “a failure to rebound will signal the end of the recovery, paving the way for a further 25% decline.”
A double bottom is a classic bullish chart pattern that signals a potential trend reversal after a downtrend. Imagine the price drops to a low, then bounces a bit, forms resistance, then falls back to test that same low. This creates a W-shaped structure with two “bottoms”. Once the price rises above the intermediate peak, a bullish reversal is confirmed.
The focus, then, is on whether the ongoing rally extends beyond the brief rebound to a $2.47 trillion market cap seen about 10 days ago.
Altcoins Rise as Dollar Falls
At the same time, major tokens are following bitcoin higher. Ether is up 4.2% over the past day, Solana is up 7%, and XRP is up 3%. The moves came as MSCI’s gauge of Asian stocks climbed 1.4% to a record, led by South Korea and Taiwan, where AI-related chipmakers hit all-time highs ahead of Nvidia’s earnings report later Wednesday.
The dollar supported risk assets. The Bloomberg Dollar Spot Index fell slightly after President Trump’s State of the Union address, in which he doubled down on his tariff plans despite the Supreme Court overturning his global import taxes.
He further suggested that tariffs could eventually replace the income tax system entirely.
A weaker dollar has always been productive for Bitcoin, although the relationship has been inconsistent during this pullback cycle.
But conviction remains slim despite the rebound. Bloomberg reported that surveyed analysts described a “crisis of confidence” in bitcoin after it fell nearly 50% from its all-time highs, with no obvious new catalysts for growth.
FxPro’s Kuptsikevich went further, saying the market likely hasn’t bottomed yet and “real capitulation is yet to come.”
