Bitcoin Jumps 3% Without Positive Catalyst, Will It Break Through $66,500 Resistance and Begin a Real Rebound?

▲ Bitcoin (BTC)

The cryptocurrency market, which had been weighed down by extreme fear, saw an influx of bargain buying, allowing market leader Bitcoin (BTC) to achieve a short-term rebound. However, in the absence of clear bullish catalysts, it continues to walk a tightrope amid lingering uncertainty.

As of February 25 (local time), CoinMarketCap data shows that Bitcoin rose 3.77% over the past 24 hours to $65,215.45. This move closely mirrors the 3.15% increase in the total cryptocurrency market capitalization, suggesting that the rebound is more of a macro recovery from oversold conditions across the market rather than a Bitcoin-specific catalyst.

The latest surge came immediately after the Fear and Greed Index plunged to 11, indicating “extreme fear,” triggering typical dip-buying activity. In the derivatives market, Bitcoin liquidations fell by 16.52% and the average funding rate turned negative, slightly easing leveraged short pressure. However, analysts say this is insufficient to serve as a decisive force capable of reversing the broader market trend.

The short-term direction now hinges on key technical indicators. To sustain the current rebound, Bitcoin must break above strong resistance levels at $66,535, where the seven-day simple moving average (SMA) stands, and $66,572, marking the 78.6% Fibonacci retracement level. Conversely, failure to hold immediate support at $63,875 could expose Bitcoin to a renewed drop toward its recent low of $60,074.

Experts are also closely watching capital flows into U.S. spot Bitcoin exchange-traded funds (ETFs). Over the past month, total assets under management (AUM) of spot Bitcoin ETFs have plunged from $118.52 billion to $91.19 billion. Analysts suggest that only if Bitcoin reclaims the $66,500 level and ETF inflows turn positive again can the move be recognized as a genuine trend reversal signaling the return of institutional investors.

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