Bitcoin Touches $70,000 Before Fading as Altcoins Lead Strong Market Rebound

Bitcoin’s recovery from a 21-month low lifted Ether, Solana and other assets, but the market has yet to confirm a trend reversal. US spot Bitcoin ETFs have recently continued to record large outflows, while the Crypto Fear and Greed Index has fallen to 24, in the “extreme fear” zone, signaling that risk appetite among institutions and retail investors remains weak.

Bitcoin recovered above $60,000 after touching $57,737, then briefly broke through $63,000 and climbed to around $64,000. Ether also rose above $1,800. A short-term squeeze liquidated about $160 million in short positions across the market within four hours, while related data put short liquidations at more than $170 million. SharpLink separately bought $16 million of Ether, but analysts said Bitcoin still needs to break above $70,000 to strengthen the reversal signal.

Bitcoin recently established key support at $75,600, coinciding with a record high for the U.S. S&P 500 and technology-sector earnings that lifted risk appetite. The $80,000 level is seen as the dividing line between bullish and bearish momentum. A decisive break above it would shift the market’s focus to a target of $85,000.

Market tracking on May 20 showed Bitcoin rebounding from a low of $75,600, first reclaiming $77,000 and then rising to about $77,700 intraday. Traders are watching whether it can retake $80,000. Meanwhile, inflows into DOGE and SHIB strengthened, signaling increased short-term speculative demand, though bearish positioning continued to weigh on the market.

The Coinbase Premium Index tracks the Bitcoin price gap between Coinbase in the United States and other exchanges. A sustained positive reading typically signals stronger U.S. spot buying. The index remained above zero for 14 consecutive days, its longest bullish streak since Bitcoin set a record above $126,000 in October 2025, making it an important sign of recovering demand.

Bitcoin broke back above $76,000 on Tuesday, April 21, as Coinbase-led spot cumulative volume delta, or CVD, rose to $517 million from $55 million on April 17. Combined spot and futures CVD exceeded $8.5 billion. Bitcoin subsequently consolidated below $77,000, shifting the market's focus to whether $75,000 can become long-term support.

10x Research said the rebound was driven mainly by the unwinding of large put-option positions at the $60,000 strike. Market makers were forced to buy Bitcoin to rebalance their exposure, rather than responding to fresh bullish inflows. With no corresponding increase in demand for upside call options, the rally’s staying power remains in doubt.

Bitcoin rose to $75,912 during Asian trading on March 17, 2026, its highest level in six weeks and since February 4, before quickly falling back below $75,000. The CoinDesk 20 Index also slipped to 2,162 from 2,202, while last year’s key support level of $74,400 has now become near-term resistance.

Bitcoin has recently tested the $73,000 threshold several times, making it a key resistance level for gauging the balance between bullish and bearish forces. Geopolitical risks have not fully subsided following the Middle East ceasefire, keeping investors cautious toward risk assets and curbing upside momentum in major tokens including Ethereum and Solana.

On the Friday cited in the report, Bitcoin fell back to $71,843 after failing for a third time to break $73,000 since the ceasefire. Ethereum's ETH, Solana's SOL and Dogecoin's DOGE traded within ranges or edged lower. The report did not provide the exact date or the percentage declines for the individual tokens.

The market had been weighed down by a February selloff and extreme pessimism after U.S. spot Bitcoin ETFs recorded $3.8 billion in net outflows over five consecutive weeks. Crowded leveraged short positions also left the market vulnerable to a short squeeze when prices rebounded. Whether ETF inflows resume has become a key indicator of risk appetite among U.S. institutional investors.

On February 25, Bitcoin rose more than 5% over 24 hours to $67,500 in early U.S. trading. ETH reclaimed $2,000, while major tokens including SOL and DOGE gained more than 10%. CoinGlass recorded more than $307 million in short liquidations. U.S. spot Bitcoin ETFs posted net inflows of $506.5 million that day, including $297.4 million for BlackRock’s IBIT.

Bitcoin is central to the crypto market’s capitalization and liquidity, and its performance often drives altcoins and investor risk appetite. The rebound came as tensions escalated in the Middle East, with Bitcoin outperforming gold and U.S. stock futures. That suggested some investors continued to view it as a highly liquid alternative asset. However, weak DeFi activity and fading interest in memecoins left the foundations of the recovery uncertain.

As of July 20, Bitcoin had rebounded to about $71,000 over 24 hours, pulling major altcoins higher. More than $550 million in positions were liquidated during the move, predominantly shorts, producing a pronounced short squeeze. Open interest declined, however, indicating that the rally was more likely driven by deleveraging and spot buying than by new, highly leveraged long positions.

Bitcoin is highly sensitive to interest-rate and inflation expectations. February’s consumer price index from the U.S. Bureau of Labor Statistics matched market forecasts and did not support a near-term Federal Reserve rate cut. Still, falling oil prices helped ease inflationary pressure and supported risk assets including cryptocurrencies.

Bitcoin quickly reversed its overnight losses after the February CPI release, first breaking above $70,100 and then climbing past $71,000. Markets also digested news of a 400 million-barrel oil release. Ether, Solana and Cardano (ADA) rose in tandem, showing little drag from weakness in U.S. stocks.

Bitcoin and Ethereum had fallen for several consecutive days as investors grew concerned about AI stock valuations and the outlook for global risk assets. Cryptocurrencies often move with risk appetite in U.S. technology shares and Asian equities, making Bitcoin's ability to hold above $66,000 an important gauge of whether market confidence is recovering.

In the latest trading, Bitcoin surged above $66,000, while Ethereum returned to around $1,920, driving a rebound across crypto markets and Asian equities. Investors are now focused on NVIDIA's upcoming earnings and guidance for clues on whether momentum in technology stocks can continue and support the outlook for risk assets.

Bitcoin has long been viewed by some investors as inflation-resistant “digital gold,” but its recent performance has more closely resembled that of a volatile risk asset. Its price has moved closely in line with software-stock benchmarks such as the iShares Expanded Tech-Software Sector ETF (IGV), suggesting that selling pressure in U.S. technology shares and private equity markets is spilling into cryptocurrencies.

During U.S. trading on Monday, July 13, Bitcoin briefly rebounded above $65,000, but the rally failed to hold. It retreated to about $65,400 as the broader stock market and software shares declined. Polymarket showed the probability of Bitcoin falling below $55,000 had risen to 72%, reflecting weakening confidence among holders and increased downside risk.