Bitcoin Squeezes Past $68,000, Technical Rebound Targets $70,000 Amid Macro Clarity
In the past day, Bitcoin (BTC) has recovered an astounding 3.8%, taking it back to the $68,000 mark. Fueled by a major derivatives short
Quick overview
- Bitcoin has surged 3.8% to reach the $68,000 mark, driven by a derivatives short squeeze and a bullish double bottom pattern.
- The new support level is set at $67,000, and Bitcoin must maintain this to continue its upward trend towards $69,500.
- A significant $10.5 billion options expiry on Friday could introduce volatility, with potential outcomes hinging on Bitcoin's ability to stay above $70,000.
- Institutional interest is returning, as evidenced by a $257.7 million inflow into U.S. spot Bitcoin ETFs amid a favorable macroeconomic environment.
In the past day, Bitcoin BTC/USD has recovered an astounding 3.8%, taking it back to the $68,000 mark. Fueled by a major derivatives short squeeze and a technical reset that has halted bearish momentum ahead of a crucial options expiry, the rally comes after a successful double bottom test at $62,500.
BTC/USD Technical Analysis: The $67,000 Floor and Double Bottom Recovery
A typical technical reversal has been a defining feature of Bitcoin’s recent price activity. The asset developed a strong double bottom pattern, a bullish signal that frequently indicates a trend change, after plunging to a two-week low close to $62,500. This basis enabled Bitcoin to soar again above its 200-day EMA ($66,559), which has served as a strong resistance mark in the past.
As of this writing, $67,000 is the new immediate support floor based on order book dynamics and societal sentiment. Bitcoin needs to continue closing above this level every day in order for the current positive trend to continue. The path of least resistance now appears to be pointing toward the most recent swing high of $69,500, as technical indicators such as the RSI are starting to trend upward from oversold zone.
Short Squeeze and Macro Boost: Why Bitcoin is Rising
The last 24 hours of increase were mostly driven by a “leverage flush.” Bears were forced to buy back Bitcoin, which accelerated the surge beyond $68,000 when more than $188 million in short bets were liquidated internationally. In traditional markets, a “risk-on” trend exacerbated this squeeze.
The Nasdaq 100 has now maintained a 90% connection with Bitcoin, thanks to renewed clarity on U.S. economic policy, particularly lower-than-expected tariff signals and declining core inflation. The U.S. spot Bitcoin ETFs also experienced a sharp recovery, with net inflows of $257.7 million on Tuesday. This signifies the definitive start of institutional “dip-buying” again after a taxing five-week redemption run.
Bitcoin Price Prediction: The $10.5 Billion Friday Showdown
Although the current trend is optimistic, this Friday’s $10.5 billion options expiry will cause significant volatility for Bitcoin. According to data from Deribit, put-holders (bears) will have a major mathematical advantage if Bitcoin stays below $70,000, as about 88% of call options will expire worthless.
- Bullish Scenario: Bitcoin would cause a huge gamma flip, requiring traders to purchase BTC to hedge their holdings, possibly aiming for $74,000, if it could use the current momentum to break and maintain $70,000 by Friday.
- Bearish Scenario: Should the market fail to consolidate over $67,000, there may be a sell-the-news reaction after the February 26 U.S. Senate bill discussion on the cryptocurrency market, which could bring prices back into the $60,000–$62,000 consolidation floor.
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