Bitcoin surges back above $66,000, Ethereum rebounds to $1,920, and Asian markets fully rebound, ending AI bubble panic

Bitcoin experienced a strong rebound this morning around 9:00, surging directly from below $64,000 to a high of $66,306. It is currently around $66,047, up over 3% today. Ethereum also rebounded, climbing from yesterday’s low of $1,846 to break through the $1,926 level, now around $1,919, up about 4%.

Technical rebound after days of panic

This rebound occurred after Bitcoin faced continuous pressure for several days. Yesterday, BTC briefly fell below $64,000, and the market’s fear and greed index remained in the “extreme fear” zone. However, today’s strong rally indicates there is solid buying support around $64,000, temporarily absorbing the bearish pressure.

From a technical perspective, Bitcoin tested the $63,000–$64,000 range multiple times without breaking down, forming a short-term bottom. The rebound today was accompanied by increased trading volume, showing active capital entry.

Ethereum holds $1,840 support and rebounds

Ethereum dipped to $1,843 yesterday but successfully held the critical support at $1,840. Today’s rally was even stronger than Bitcoin’s, with a roughly 4% increase, briefly surpassing $1,926.

The ETH/BTC ratio also slightly recovered, indicating a warming risk appetite as funds rotate from BTC into ETH and other altcoins.

Market outlook: rebound or reversal?

Despite the strong rebound today, market analysts remain cautious. Considering that BTC has already fallen about 23% in the first 50 trading days of this year, marking its worst start in history, whether this single-day bounce can reverse the overall downtrend remains to be seen.

On the bullish side, long-term holders (LTH) of Bitcoin have recently increased their supply, now holding about 14.3 million coins, suggesting seasoned investors are taking advantage of the dip. Additionally, the interest rate market is readjusting, with expectations of multiple rate cuts by 2026, and the possibility of a rate cut as early as April continues to rise.

US tech stocks rebound supports crypto, Asian markets may follow

This crypto rebound is not happening in isolation. Overnight, US stocks performed well, with tech stocks bouncing back, pushing the Nasdaq 100 up 1.1%, and the S&P 500 also rising. Software stocks, after recent AI-related panic selling, showed a clear rebound. Better-than-expected consumer confidence data further supported the market.

Asian markets are expected to open strongly, with futures indicating gains in Sydney, Tokyo, and Hong Kong. This morning, Asian stocks broadly rose, while short-term bonds underperformed, and gold and oil prices declined, showing capital flowing from safe-haven assets back into risk assets.

The market is also closely watching Nvidia’s earnings report due Wednesday. David Laut of Kerux Financial said this week’s earnings could “alleviate” or “exacerbate” investor concerns about AI. After a recent sell-off in large tech stocks, Nvidia’s stock has been flat, but analysts generally expect its earnings to far surpass expectations.

Given the high correlation between Bitcoin and US tech stocks, if Nvidia’s earnings are strong and boost tech stocks further, BTC could gain additional upward momentum. The market will focus on whether the $66,500 resistance level can be broken and if ETH can hold above $1,900.