Bitcoin Price Surges Over 7% to $69,000 as Market Tests Post-Capitulation Range

Bitcoin climbed over 7% to $69,000 on February 25, marking a sharp rebound after weeks of declining prices. The rally was supported by a shift in market sentiment and the unwinding of crowded short positions.

Major altcoins like Ethereum, Solana, and Chainlink also saw gains as the broader market improved. Over $307 million in leveraged bearish positions were liquidated in the past 24 hours, suggesting the market had reached an oversold condition.

The U.S. spot Bitcoin ETFs recorded $257.7 million in inflows, the largest since early February. This helped reverse recent outflows and pushed weekly flows into positive territory, with Fidelity's and BlackRock's ETFs leading the way.

Why Did This Happen?

The Bitcoin price rebound was driven by a shift in market dynamics. The Crypto Fear & Greed Index had remained at historic lows, and perpetual futures funding rates had turned negative, indicating short sellers were paying longs to hold positions. The weaker U.S. dollar also contributed to the rally, reinforcing a risk-on environment in Asian equities.

Institutional investors sold 25,000 BTC in Q4 2025, valued at around $1.6 billion. However, these large holders still maintain a significant portion of Bitcoin's supply.

How Did Markets Respond?

Crypto-related stocks also responded positively to the market movement. Circle Internet's stock surged 19.4% after its Q4 earnings and revenue exceeded expectations. USDC's circulation increased by 72% year-over-year, and other crypto-exposed stocks like TeraWulf, CleanSpark, and MARA Holdings also saw gains.

Strategy (MSTR), the largest corporate holder of Bitcoin, and Coinbase Global rose in tandem with the price rebound.

What Are Analysts Watching Next?

Analysts are closely monitoring the Bitcoin Hash Ribbon indicator, which is nearing the end of a three-month miner capitulation phase. Miner capitulation occurs when mining revenue falls below operating costs, leading to reduced hash rate and increased sell pressure. A recovery signal will occur when the 30-day hash rate moving average crosses above the 60-day average, indicating miners returning online and easing network stress.

Bitcoin is now trading below an estimated average production cost of $66,000, a level historically associated with market bottoms. This pattern has been observed in January 2015, December 2018, and December 2022.

Bitcoin's rebound from the 0.786 Fibonacci support near $62,000 is also being watched. Rising volume during this rally indicates genuine buyer demand and may confirm the formation of a local bottom. The next key level for bulls is the point of control (POC), which, if reclaimed, could signal value migration higher and lead to expansion toward upper resistance levels.

Market observers are also looking for confirmation that the current rebound forms a double-bottom pattern. A failure to sustain the recovery could trigger a further 25% decline, while a successful rebound could lead to a 10% upside.

Bitcoin's price movement continues to test the boundaries of its post-capitulation range, with investors and analysts closely tracking key technical and fundamental indicators for further confirmation.