After a round of intense shakeouts driven by leveraged liquidations, the crypto market finally caught a breather on February 25. According to Gate market data, Bitcoin (BTC) staged a strong rebound this morning after yesterday’s steep drop. The current price stands at $65,000, with a 24-hour high of $66,309.7 and a low of $62,501. This rollercoaster price action has once again brought Bitcoin to a critical test at the $60,000 mark: Is this the final dip before dawn, or merely a midpoint on the road through the bear market?
Liquidation Map: $1.6 Billion at the Center of the Long-Short Battle
This rebound unfolded against the backdrop of massive liquidations in the previous trading session. While market participants often attribute price swings to news events, the deeper cause was excessive leverage buildup, which triggered the sharp downturn.
Data from Coinglass shows that yesterday, total liquidations across the crypto market approached astronomical levels. Currently, liquidation activity is highly concentrated. According to the latest liquidation intensity figures, if Bitcoin can break above the $66,000 threshold, the cumulative short liquidation volume on major centralized exchanges (CEX) could reach an astonishing $1.593 billion. In other words, a decisive move above this level could trigger a wave of short covering, propelling prices even higher.
Conversely, if bulls lose momentum and the price drops again, the downside risk remains significant. Should Bitcoin fall below the $62,000 support, cumulative long liquidation volume on major CEXs is expected to hit $717 million. Some data models even indicate that a break below $62,139 could see total potential long liquidations surge to $1.697 billion. This high-stakes liquidation setup means any breakout—up or down—will likely be extremely volatile.
The Quality of the Rebound: Divergence Between Technicals and Macro Logic
Even though the price has rebounded to near $66,000, most market analysts remain cautious about the strength of this rally.
From a technical perspective, Bitcoin found strong support at $62,501 and quickly bounced, but faced resistance at $66,309. The price is currently battling around the 5-day moving average. The real test lies in the $67,200 to $68,000 resistance zone; without a high-volume breakout above this area, the rally may be nothing more than a technical retracement.
On-chain and derivatives data reveal ongoing concerns. Despite the price rebound, funding rates on both major CEXs and DEXs remain negative, and most altcoins are still seeing negative funding rates. This suggests overall market sentiment hasn’t reversed on the back of a single-day rally—demand for short hedges remains strong. Independent market analysts note that the largest cohort of holders are addresses that bought near the highs and are currently underwater. These trapped investors have become "strong hands" by necessity, but the lack of new capital inflows keeps the market in a defensive posture.
Support and Resistance: The Battle for $60,000
The current market structure is characterized by "double-sided liquidation" for both longs and shorts. For traders, focusing on key price zones is more practical than predicting a single direction.
- Upside Resistance: Immediate resistance sits at $66,309, today’s high. If this level is decisively broken, the price could quickly move to the $67,200–$68,000 range—a major cluster of short positions and a true test of the rebound’s strength. A breakout above $68,619 could trigger an even larger wave of short liquidations, potentially driving the price toward $70,000.
- Downside Support: The first key support is the psychological $65,000 level, which underpinned today’s rebound. If this level fails again, the previous low at $62,500 will be retested. Should the $62,000–$62,139 area break, the liquidation map suggests the market could face heavy selling pressure, possibly triggering a cascade of forced liquidations and accelerating a move toward the $60,000 round number.
Conclusion
Bitcoin’s $60,000 test is fundamentally a battle of liquidity and confidence. The $1.593 billion short liquidation pool above $66,000 is a beacon for bulls, while the massive long stop-losses below $62,000 represent a bottomless abyss.
Today’s rebound was sharp, but negative funding rates show the market hasn’t fully shifted to key bullish momentum. For momentum traders, it may be prudent to wait for a confirmed breakout above $66,500 before making decisions. For early-positioned traders, strict position management is essential, or consider using Gate’s financial products to seek stable returns amid volatility. This approach balances caution during a potential downtrend with readiness for genuine bottom-fishing opportunities.
