Bitcoin returned to $65,400 on Wednesday morning as a weaker US dollar and riskier Asian stocks gave crypto markets their first clean jump in weeks.
The broader cryptocurrency market capitalization fell to $2.19 trillion earlier this week, effectively retesting the lows reached during the February 5 crash. That proximity makes the current move interesting.
If the level holds, the market faces a textbook “double bottom” with roughly 10% upside, according to Alex Kuptsikevich, chief market analyst at FxPro. If that doesn’t happen, he warned, “a failure to recover will signal the end of the recovery, opening up the potential for a further 25% decline.”
A double bottom is a classic bullish chart that signals a potential trend reversal after a downtrend. Imagine the price drops to a low, then rebounds a bit, forms resistance, and then comes back to test the same low. This creates a W-shaped structure with two “bottoms”. Once the price breaks through the intermediate top, a bullish reversal is confirmed.
So the focus is on whether the ongoing recovery will extend beyond the brief jump to the $2.47 trillion market cap seen about 10 days ago.
Altcoins rise, dollar falls
Meanwhile, major tokens are following bitcoin up. Ether rose 4.2% over the past day, Solana gained 7% and XRP added 3%. The moves came as MSCI’s index of Asian shares climbed 1.4% to a record high, led by South Korea and Taiwan, where AI-related chipmakers hit record highs ahead of Nvidia’s earnings report later on Wednesday.
The dollar provided a tailwind for risky assets. The Bloomberg Dollar Spot index fell slightly after President Trump’s State of the Nation address, in which he doubled down on tariff plans despite the Supreme Court striking down his global import taxes.
He further suggested that tariffs could eventually replace the income tax system entirely.
A crisis of confidence
A weaker dollar has historically been constructive for bitcoin, although the relationship has been inconsistent during this bear cycle, SEEbiz reports.
But belief remains weak despite the recovery. Bloomberg reported that analysts it surveyed described a “crisis of confidence” in bitcoin after its nearly 50% drop from all-time highs, with no apparent new catalysts for growth.
FxPro’s Kuptsikevich went a step further, saying the market probably hasn’t bottomed yet and that “the real capitulation is yet to come.”
