Bitcoin surged back near $69,000 on Wednesday, rallying more than 10% from Tuesday’s low as crypto markets staged a broad relief rally after weeks of persistent selling pressure. The sharp move higher caught many traders leaning the wrong way, triggering a cascade of short liquidations across the market.
Ethereum (ETH), Dogecoin (DOGE), Solana (SOL), and Cardano (ADA) all posted double-digit gains, extending a move that offered a welcome reprieve after a prolonged stretch of pessimism and fears of a next leg lower.
Digital asset stocks joined the rally as well. Stablecoin issuer Circle (CRCL) surged 34% following its earnings report, while crypto exchange Coinbase (COIN) jumped 14%. Strategy (MSTR), the largest corporate holder of bitcoin, climbed 9%, and ether treasury firm BitMine advanced 12%.
Analysts: Treat the Bounce With Caution
Despite the sharp move higher, analysts were quick to pump the brakes on calling this the start of a new bull run.
Joel Kruger, market strategist at LMAX Group, pointed to extreme fear and bearish positioning as the primary driver of the Wednesday move rather than any fundamental shift in the market.
“Crypto assets have been heavily pressured in recent months and overdue for a technical bounce,” Kruger wrote. “The market had built up a meaningful tactical short bias, leaving it vulnerable to sharp squeezes on limited headlines.”
He added a note of caution about the rally’s durability. “Given the abrupt nature of the rally and the absence of a clear trigger — particularly against the backdrop of thinner liquidity conditions — the advance should be treated with caution,” Kruger said.
Funds Chasing Altcoins and Options
Joshua Lim, global co-head of markets at FalconX, said his desk is seeing heavy demand for bullish bets on Ethereum in the options market. Traders are specifically buying call options and call spreads in the $2,000–$2,200 range over the next two to three weeks, seeking to profit from further near-term upside.
Lim noted that some funds are also chasing the rally by rotating into higher-volatility altcoins and using options to amplify potential gains — a sign that risk appetite has picked up sharply following the rebound.
$7.49 Billion in Options Expiring Friday
Adding complexity to the near-term picture, roughly 115,000 BTC options worth approximately $7.49 billion are set to expire Friday at month-end. The so-called “max pain” level — the price at which the largest number of options expire worthless — currently sits around $75,000, according to Wintermute OTC trader Jasper De Maere.
The max pain point can sometimes act as a magnetic level heading into expiry, though De Maere noted that dealer positioning appears weak. “Fundamental indicators still remain unconvincing that this strength will see much follow through,” he added.
Key Resistance Levels to Watch
Technically, bitcoin faces stiff resistance in the $70,000 to $72,000 zone, where recent rallies have stalled as sellers stepped in. Breaking those levels on a sustained basis would be the first challenge in turning the current bounce into a durable move higher.
Bitfinex analysts pointed to $78,000 as an even more critical level, where the “True Market Mean” — an on-chain valuation metric that estimates bitcoin’s fair value based on actual capital flows into the network — currently sits. That level must be reclaimed on a sustained weekly basis before the structural picture meaningfully improves, according to Bitfinex.
Bottom Line
Wednesday’s rally was sharp, broad-based, and provided welcome relief after weeks of relentless selling. But the absence of a clear fundamental catalyst, combined with looming resistance levels and a massive options expiry on Friday, means crypto traders should approach the rebound with disciplined caution. The difference between a short squeeze and the start of a new trend will be determined by whether bitcoin can break and hold above $72,000 — and eventually reclaim $78,000 — in the days and weeks ahead.
Tags: Bitcoin, BTC, Ethereum, ETH, Solana, SOL, Dogecoin, DOGE, Cardano, ADA, Coinbase, COIN, Circle, CRCL, Strategy, MSTR, BitMine, crypto rally, short squeeze, bitcoin resistance, crypto news, altcoins
