[Market] Bitcoin reclaims $65,000…losses ease as U.S. stocks rebound

Bitcoin (BTC) reclaimed the $65,000 level on the back of a rebound in U.S. equities. However, further downside risk is also being raised depending on whether key support levels hold.

According to Cointelegraph on the 24th (local time), as U.S. stocks rebounded after shaking off the shock from a sharp selloff in AI and tech shares, Bitcoin pared its losses, moved above $66,000, and then traded around the $65,000 level. The Dow closed up 370 points on the day, while the S&P 500 rose 0.77%.

Market participants say the key inflection points are regaining $65,000 and whether $60,000 holds as support. Some analysts warned that "if it falls below $60,000, a new low could quickly open toward the low-$50,000s."

On-chain data is also in focus. Market analytics platform Material Indicators reported spot buying worth $4.5 million. They said, "This is a significantly larger size than the $1 million to $2 million typically seen at that order class," adding, "They usually show this kind of behavior when they step directly into liquidity with bids to break through a liquidity wall."

Technical indicators are still flashing bearish signals. Bitcoin’s weekly relative strength index (RSI) fell to 25.71. Alex Thorn, head of research at Galaxy Research, assessed that "the weekly RSI is approaching levels lower than at any time except the bleakest bear markets."

Rekt Capital, however, struck a more cautious tone. He said, "A daily close below the 200-day moving average has been confirmed," adding that "on any rebound ahead, that zone could flip into resistance and could trigger an acceleration in further declines."

While Bitcoin has managed a short-term rebound, some say it will take time before a bottom is formed. Bitcoin analyst Brian Brookshire said, "The process of building a base can take time," adding that "it is important to confirm a balance in profit/loss supply metrics and a rebound in the mining cost basis zone."