Bitcoin rallies close to $69,000 as analysts warn turbulence may not be over.

Digital assets rebounded strongly from Tuesday’s slide, but market participants remain unconvinced that the move marks the beginning of a sustained uptrend.

Bitcoin rallied more than 10% from its recent low, climbing back toward the $69,000 level on Wednesday as bearish positioning unwound across derivatives markets. The advance followed an extended stretch of downside pressure that had left sentiment deeply negative.

The recovery was broad-based. Ethereum’s ether posted double-digit gains, while Solana, Cardano and Dogecoin also surged, squeezing traders who had positioned for further declines.

Crypto-linked equities joined the move. Circle soared 34% following its latest earnings report, shares of Coinbase rose 14%, and MicroStrategy — the largest corporate holder of bitcoin — gained 9%. Meanwhile, BitMine Immersion Technologies advanced 12% as risk appetite returned to the sector.

Analysts said the rally appeared driven largely by positioning rather than a clear fundamental catalyst. Joel Kruger of LMAX Group noted that crypto assets had been under sustained pressure for months, leaving the market heavily skewed to the short side and vulnerable to a sharp countertrend squeeze.

However, he cautioned that the speed of the move — coupled with relatively thin liquidity — suggests traders should be wary of chasing prices higher without confirmation of stronger underlying momentum.

Options flows indicate that speculative appetite has already picked up. Joshua Lim, global co-head of markets at FalconX, said traders are actively purchasing ether call options and call spreads targeting the $2,000–$2,200 range over the coming weeks. Some funds are also rotating into higher-beta altcoins and using derivatives to magnify exposure, signaling a swift rebound in risk-taking behavior.

Still, upcoming derivatives expiries may influence short-term price action. Roughly 115,000 bitcoin options contracts, valued at approximately $7.49 billion, are set to expire at month-end. Jasper De Maere of Wintermute highlighted that the “max pain” level currently sits near $75,000 — a price point that can sometimes act as a gravitational pull into expiry. Yet he added that broader fundamentals remain insufficiently convincing to support sustained upside.

From a technical perspective, bitcoin faces immediate resistance between $70,000 and $72,000, an area where previous advances have stalled. A decisive breakout above that zone would strengthen the bullish case.

Beyond that, analysts at Bitfinex identified $78,000 as a critical threshold, aligning with the “True Market Mean,” an on-chain valuation metric tracking aggregate capital flows into the network. Sustained weekly closes above that level would be required to materially improve the longer-term outlook.

For now, the rally has eased immediate downside pressure — but whether it represents the start of a new leg higher or simply another relief bounce remains uncertain.

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