Key Takeaways
- BTC surged past $65,000 during Wednesday’s trading session as Asian stocks rallied and the U.S. dollar lost ground
- A double-bottom chart pattern is emerging across the crypto market, presenting either 10% upside potential or 25% downside risk
- BTC’s weekly RSI dropped to 25.71, matching deeply oversold levels last observed in July 2022
- President Trump’s State of the Union speech contained no cryptocurrency mentions, causing gains to diminish
- Nearly $230 million in put options expiring March 6 are concentrated around the $58,000 level, indicating hedging activity
Bitcoin pushed beyond the $65,000 threshold on Wednesday, marking the cryptocurrency’s strongest rebound in weeks as the U.S. dollar softened and Asian equity markets posted solid gains.
The leading cryptocurrency touched $66,000 during Asian trading sessions, representing its most significant single-day advance since February 13. BTC eventually stabilized near $65,400 as momentum cooled during President Trump’s State of the Union remarks.
Ethereum climbed over 2.5% to approximately $1,906. Solana surged as much as 7%, while XRP registered gains of roughly 3.5% during the same timeframe.
The total cryptocurrency market capitalization had fallen to $2.19 trillion earlier in the week, approaching the lows recorded during the February 5 market crash.
FxPro analysts observe that a potential double-bottom formation is developing. According to FxPro’s Alex Kuptsikevich, maintaining this support level could trigger approximately 10% upside movement, while breaking below it might result in a 25% correction.
Orbit Markets’ Caroline Mauron characterized the morning rally as bargain hunters entering after prolonged selling pressure. She noted that breaching $70,000 would be necessary to fundamentally alter market sentiment.
Technical Indicators Show Extreme Oversold Conditions
Bitcoin’s weekly Relative Strength Index has declined to 25.71, matching levels last witnessed in July 2022. Historical data shows RSI readings beneath 28 have frequently preceded trend reversals and attractive entry points.
Alex Thorn, head of research at Galaxy, noted that Bitcoin is “nearing all-time oversold territory,” with weekly RSI readings lower than virtually any period outside of severe bear market bottoms.
Additionally, Bitcoin trades just 9% above its 200-week exponential moving average positioned at $58,855, a threshold that traders have historically identified as the beginning of bottom formation phases.
Rekt Capital, a prominent analyst, provided a more reserved perspective. He suggested that the confirmed daily close beneath the 200-EMA could transform this level into resistance during any subsequent recovery attempts.
Material Indicators, a market analytics firm, identified a substantial $4.5 million spot buying transaction by institutional players on Tuesday, significantly exceeding the typical $1 to $2 million order sizes from this cohort.
Presidential Address Provides No Crypto Catalyst
Market momentum began weakening even as Trump continued his speech. The President made no reference to digital assets throughout his address, despite his perceived pro-cryptocurrency stance.
Earlier this week, the Supreme Court blocked Trump’s emergency powers for implementing reciprocal tariffs, a development that had already pressured crypto valuations. Trump subsequently announced plans to impose 15% global tariffs through alternative legal mechanisms.
The Bloomberg Dollar Spot Index declined modestly following the address. While dollar weakness has traditionally supported Bitcoin prices, this correlation has proven unreliable during the current downturn.
Approximately $230 million worth of put options expiring March 6 are concentrated at the $58,000 strike price. FalconX analyst Sean McNulty attributed this positioning to concerns surrounding a possible U.S. military action against Iran, with Polymarket prediction markets placing odds at 48% by March 15.
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