Bitcoin climbed back to $65,400 early Wednesday, helped by a softer U.S. dollar and a stronger risk appetite across Asian equities. The bounce stands out because the broader crypto market had already fallen to $2.19 trillion earlier this week, almost revisiting the lows seen during the Feb. 5 crash.
That is the level traders are watching. Alex Kuptsikevich, chief market analyst at FxPro, said that if the market can hold here, it would point to a textbook double bottom with about 10% upside. If the rebound fails, he warned, the recovery would likely be over and the market could face another 25% decline.
Market cap levels are now at the center of the setup
A double bottom is a classic reversal pattern that forms after a downtrend: price falls to a low, rebounds, then returns to test that low again, creating a W-shaped structure. The bullish signal is only confirmed once price breaks above the middle peak. For crypto, the question is not just whether this bounce can hold for a session, but whether the market can extend beyond the brief recovery to roughly $2.47 trillion in total market capitalization seen about 10 days ago.
That makes this move more than a routine relief rally. If total market value stays pinned near the lows, the double-bottom case weakens quickly.
Ether, Solana and XRP join the advance
Major tokens moved higher with bitcoin. Over the past day, Ether gained 4.2%, Solana rose 7%, and XRP added 3%. The rise came as MSCI’s Asian equities gauge advanced 1.4% to a record, led by South Korea and Taiwan, where AI-linked chipmakers reached all-time highs ahead of Nvidia’s earnings report later Wednesday.
The dollar also gave risk assets support. Bloomberg’s Dollar Spot Index edged lower after President Trump’s State of the Union address. According to the report, Trump repeated his tariff plans even after the Supreme Court struck down his global import taxes, and he said tariffs could eventually replace the income tax system entirely.
Prices bounce, but confidence is still thin
A weaker dollar has often supported bitcoin, though that link has not held consistently during this drawdown cycle. Even with prices rebounding, conviction remains limited. Bloomberg said analysts in its survey described a “crisis of confidence” in bitcoin after the token fell nearly 50% from its all-time high, with no clear new catalyst for growth in sight.
Kuptsikevich took an even more cautious view, saying the market likely has not reached its bottom and that “real capitulation is still ahead.” The rebound has put support levels back in focus. Whether it turns into a confirmed reversal now depends on whether those lows can hold under continued trading pressure.