Bitcoin hits $70,000 resistance and pulls back, while altcoins collectively surge, signaling a strong rotation.
February 26 News: Bitcoin briefly approached the $70,000 mark on Wednesday but failed to break through effectively, then retreated to around $68,300, with fluctuations of nearly 5% from the intraday high and overnight low. This is the most significant upward attempt since the sharp decline on February 5, but key resistance levels still suppress upward movement, resulting in a high-level oscillation pattern in the short term.
Compared to Bitcoin’s relatively restrained performance, altcoins are showing stronger momentum. Ethereum rose about 8.5%, Solana increased approximately 6.9%, Cardano surged over 10%, and Dogecoin also gained about 8%, clearly outperforming the broader market. Bitcoin’s gain during the same period was only about 4.3%, ranking lower among mainstream cryptocurrencies, indicating that funds are rotating from core assets to higher-beta tokens.
ZeroStack CEO Daniel Reis-Faria pointed out that the pressure of forced selling is gradually easing. When altcoins outperform again, it often signals a rebound in market risk appetite, with traders increasing their positions in more volatile crypto assets. This is typically a characteristic of a phase of short-term rebound.
On the macro level, market conditions still impose constraints. The rally following the earnings reports of AI-related leaders has slowed, and tech stock sentiment has cooled, indirectly affecting risk assets. Meanwhile, market-making firm Wintermute stated that some funds are shifting toward defensive and physical assets, and liquidity recovery in the crypto market remains slow.
On-chain data shows that Glassnode believes overall liquidity may take several months to recover significantly, while Matrixport points out that stagnant stablecoin supply growth remains a key factor limiting Bitcoin’s continued rise. Although Cryptoquant data indicates that selling pressure has eased, supporting a short-term rebound, if Bitcoin falls below the critical $60,000 support zone, the market could face deeper corrections. The current trend reflects a clear divergence between short-term technical rebounds and medium-term trend recovery.
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