Bitcoin rebounds back to $65,000: Weakening dollar + double bottom pattern battle, is it a 10% rise or a 25% drop at the critical point?
February 25 News: According to CoinDesk, as the US dollar weakens and risk appetite in Asian stock markets rebounds, the crypto market has shown a noticeable rally after several weeks. Bitcoin’s price has retaken the around $65,400 level, driving mainstream digital assets to recover in tandem. Market participants are generally focused on whether the current region constitutes a key technical support level and whether the “double bottom” pattern can be confirmed.
On the macro level, the weakening US dollar index and the strengthening of Asian stock markets are resonating, boosting the appeal of risk assets. The MSCI Asia index rose to a new high for the period, with South Korea and Taiwan stock markets performing strongly, coupled with gains in AI-related stocks, which helped improve market sentiment. After US President Trump’s State of the Union address, the Bloomberg US dollar spot index slightly declined, indirectly providing upward momentum for Bitcoin and other cryptocurrencies.
FxPro Chief Market Analyst Alex Kuptsikevich pointed out that Bitcoin’s current movement is testing a potential double bottom structure. If the price can hold above the February 5 low, the technical pattern may be confirmed, with an estimated 10% rebound potential; however, if support is broken, a deeper correction could be triggered, with downside risk possibly expanding to 25%. This critical zone is seen as a short-term trend dividing line.
Driven by Bitcoin’s rebound, major tokens like Ethereum, Solana, and XRP also rose in tandem, indicating a phased return of funds to risk assets. However, analysts remain cautious about market sentiment. Data shows that Bitcoin has retraced nearly 50% from its all-time high, and market confidence has not fully recovered. Additional capital inflows and clear catalysts are still lacking.
It is noteworthy that although a weaker dollar generally favors Bitcoin’s movement, the correlation between the two has fluctuated during this cycle, increasing market uncertainty. Some institutional views suggest that the current rebound is more of a technical correction rather than a trend reversal. Kuptsikevich further warned that if macroeconomic conditions tighten again or risk appetite cools, the market could face a “second bottom,” and even larger downward pressure cannot be ruled out.
Under the intertwined influence of macro policies, US dollar liquidity, and technical structures, Bitcoin’s future trajectory will heavily depend on whether key support levels can hold. Short-term volatility may continue to remain high.
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