Three Drivers Behind the Rally in Bitcoin: Risk-On Rebound and Reset
Bitcoin experienced a significant rebound, climbing back toward $69,000 on February 25 after an intraday drop that saw prices touching the low-$60,000s across various exchanges. This move brought the price within the established $60,000 to $69,000 range for February, according to data from Glassnode.
Structural Weakness Persists Despite Recent Bounce
The recent rally does not indicate a fundamental shift in market conditions. Instead, it reflects a combination of risk appetite returning and a reset in flows and positioning following a period of capitulation. According to Glassnode, the market remains stabilizing rather than recovering from its previous drawdown.
Despite this positive movement, several structural issues persist: weak accumulation, negative spot flow bias, and fragile ETF demand. Bulls need to maintain control over $65,000 to $69,000 and regain levels above $70,000 and $72,000 before declaring the recent weakness as resolved.
The “don’t lose it” floor remains at $62,000 with prices below that level including $60,000 and approximately $55,000. This recent move is seen more as a mechanical relief rather than structural recovery from the previous downturn.
Related: 1011 Insider Whale Deposits 100 $BTC into Kraken Again | Whale Address Accumulates Additional 1030 $BTC Worth $114 Million
