Bitcoin approached the $70,000 level on Wednesday evening before retreating to about $68,100 in Thursday trading, highlighting ongoing volatility in digital-asset markets.

The move represented roughly a 5% swing between the session high and an overnight low near $67,700 and marked the strongest attempt to reclaim the $70,000 threshold since the Feb. 5 market downturn.

Despite the advance, analysts cautioned that the move does not yet signal a sustained trend reversal, describing the rally as a temporary recovery rather than the start of a new bull phase.

Market activity showed broader participation beyond bitcoin itself.

Several alternative cryptocurrencies significantly outpaced the largest token.

Ether rose about 8.5%, Solana gained 6.9%, Cardano surged 10.8%, and Dogecoin added roughly 8.3%, while bitcoin’s 4.3% rise was among the smallest gains within the top ten digital assets.

Such divergence often indicates increasing investor risk tolerance, as traders shift toward higher-beta assets after periods of heavy selling.

“The wave of forced selling is starting to clear out,” said Daniel Reis-Faria, CEO of ZeroStack, in a CoinDesk report. “Altcoins are outperforming again, and more of them are ahead of bitcoin. That tells me we're seeing a rotation.”

Trading activity also expanded, with bitcoin volumes rising 34% over 24 hours.

Ethereum moved above the $2,000 resistance level, and the global cryptocurrency market capitalization climbed to approximately $2.26 trillion.

Stocks linked to digital assets followed the move, with Strategy Inc. (formerly known as Microstrategy) and Coinbase Global rising 8.86% and 13.52%, respectively.

More than $580 million in crypto positions were liquidated during the rally, largely wiping out bearish short bets, according to Coinglass.

Bitcoin open interest increased 3.44%, although whale sentiment across major exchanges remained negative.

Market sentiment indicators still reflected caution, with the Crypto Fear & Greed Index showing “Extreme Fear.”

The recovery occurred alongside broader financial market strength.

The Dow Jones Industrial Average rose 307.65 points, or 0.63%, while the S&P 500 gained 0.81% and the Nasdaq Composite climbed 1.26%.

Precious metals also advanced modestly.

The cryptocurrency rebound followed Nvidia’s earnings report, which beat expectations but failed to sustain a strong rally in technology shares.

Nasdaq 100 futures fell 0.3% after the release, and Nvidia shares ended extended trading only slightly higher.

Analysts said the macro environment remains fragile.

Market maker Wintermute observed crypto tokens have been moving in tandem with technology equities as investors shift capital toward defensive assets.

Matrixport cited stagnating stablecoin supply as a “significant obstacle” to bitcoin’s recovery, while Glassnode estimated broader liquidity conditions may take at least six months to improve.

On-chain indicators suggest selling pressure has eased but not reversed.

CryptoQuant reported bitcoin’s fund-flow ratio remains low, implying reduced sell-side pressure but not a confirmed upward trend.

“If the ratio remains low, any upward price reaction could create the conditions for a strong short squeeze. In other words, be prepared for a relief bounce,” CryptoQuant added.

Technical risks persist.

Bitrue warned that a drop below $60,000 could trigger declines toward $50,000-$55,000 or even $47,000 if liquidations accelerate.

On-chain platform Santiment flagged rising “FOMO” chatter as a “good profit-taking signal.”

The post Bitcoin nears $70K as altcoins surge, analysts call rally relief bounce appeared first on Invezz

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