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Bitcoin rose about 4% and moved back toward $66,000 on Wednesday, February 25, as US stocks rebounded and short-term risk appetite improved. The move came while market data still showed weak sentiment, which kept attention on whether the recovery can hold above key resistance levels.
Bitcoin traded near $65,000 to $66,000 during the rebound after a recent slide, tracking a broader recovery in risk assets. Market coverage of the move linked the rise to gains in US equities, especially technology shares, after Tuesday’s session improved sentiment across stocks and crypto.
Bitcoin price action also aligned with a shift in US demand indicators. Market analysts reported that the Coinbase Premium Index turned positive, a sign that US-based buyers returned to the market. The analyst also cited $258 million in Bitcoin ETF net inflows on Tuesday, which added support to the rebound narrative.
Even with the bounce, the market remains sensitive to resistance near $66,500.
Traders continue to watch whether Bitcoin can hold above nearby support around the mid-$64,000 range and build momentum toward the $67,000 to $70,000 zone.
A key theme in the latest Bitcoin analysis centers on Bitcoin’s divergence from gold and equities over the last six months. Santiment noted that Bitcoin underperformed both assets during that period, while the usual correlation weakened sharply.
“Since late August, gold has surged +51%, the S&P 500 has gained +7%, and Bitcoin has fallen -43%,” Santiment said.
According to analysts, the daily correlation coefficient is currently near 0.32 for Bitcoin versus the S&P 500 and about -0.45 versus gold. Santiment argued that such a sharp break in correlation often does not last, and it may point to upside if Bitcoin returns to its historical pattern during a broader economic expansion.
That view does not guarantee a rapid move higher. It does, however, provide context for why some market analysts see the current gap as a delayed reaction rather than a breakdown in Bitcoin’s longer-term market role. The analysis centers on liquidity, leverage unwinds, and positioning rather than a full change in the underlying investment thesis.
Also Read: Bitcoin Price Trades at $67,732 as $71,000 Resistance Comes into Focus
The broader crypto market also posted a recovery, with total market capitalization rising to about $2.25 trillion to $2.26 trillion on the day, according to CoinMarketCap data. Bitcoin remained the main driver, while major altcoins such as Ether and Solana recorded stronger percentage gains over the same session.
Still, sentiment indicators showed caution. CoinMarketCap’s market page displayed a Fear & Greed reading of 11, which sits in extreme fear territory, while the referenced Altcoin Season Index reading of 37 indicated continued Bitcoin leadership rather than broad altcoin participation.
This combination leaves the market in a mixed position. Price has stabilized, but conviction remains limited. As a result, Bitcoin’s ability to defend the $65,000 area and break above $66,000 may shape the next short-term move for the wider crypto market.
