A broad advance across digital assets took shape alongside a softer U.S. dollar and a rally in Asian equities, though market participants remain split on whether the Feb. 5 lows will ultimately mark a durable bottom.
Bitcoin (BTC) reclaimed the $65,400 level early Wednesday, supported by renewed risk appetite and dollar weakness that delivered crypto markets their most convincing bounce in weeks.
Earlier this week, total crypto market capitalization slipped to around $2.19 trillion, nearly revisiting the trough recorded during the Feb. 5 sell-off. That near retest has heightened the technical significance of the current rebound.
According to Alex Kuptsikevich, chief market analyst at FxPro, holding these levels could form a textbook double-bottom pattern, implying roughly 10% upside. However, he cautioned that failure to extend the rebound would likely invalidate the recovery narrative and open the door to a potential 25% further decline.
The double bottom is a classic bullish reversal structure that emerges after a downtrend. It consists of two comparable lows separated by a temporary rally, creating a “W” formation. A breakout above the intervening high typically confirms the reversal.
The focus now turns to whether the present rally can move beyond the brief surge to roughly $2.47 trillion in total market value seen about 10 days ago.
Altcoins track higher as dollar softens
Major alternative tokens followed bitcoin’s lead. Ether rose 4.2% over the past 24 hours, solana gained 7%, and XRP added 3%.
The gains coincided with a 1.4% rise in MSCI’s Asia equity index, which climbed to a record high, led by strength in South Korea and Taiwan. AI-linked chipmakers in those markets hit fresh peaks ahead of earnings from Nvidia later Wednesday.
The U.S. dollar also provided support for risk assets. The Bloomberg Dollar Spot Index edged lower following President Donald Trump’s State of the Union address, where he reiterated his commitment to tariffs despite a Supreme Court decision striking down his global import tax plan. He further suggested that tariffs could eventually replace the federal income tax system.
A weaker dollar has historically been supportive of bitcoin, though that relationship has been less reliable during the current correction phase.
Despite the bounce, conviction remains limited. Bloomberg reported that analysts it surveyed described a “crisis of confidence” around bitcoin after its nearly 50% slide from all-time highs, citing the absence of clear new growth catalysts.
Kuptsikevich maintained a cautious stance, arguing that the market likely has not yet seen full capitulation and warning that “real capitulation is still ahead.”
