Bitcoin climbed back above $68,000 on Thursday, rebounding from a local trough near $65,600 even as U.S. spot ETF outflows reached $6.8 billion. Analysts say a sustained push through $72,000 is needed to validate a broader bullish reversal.

The recovery extended into the Asian session. Since midnight UTC, bitcoin added around 2%, while Solana (SOL) rose 2.7% and ether (ETH) gained 1.2%.

Even with the bounce, the wider trend remains under pressure. Bitcoin continues to carve out lower highs and lower lows, effectively retracing most of the rally posted in the 12 months through October 2025. In the near term, the asset remains locked in a range between support and resistance, with $72,000 viewed as the key breakout level required to shift momentum decisively.

Meanwhile, U.S.-listed spot bitcoin ETFs are facing their deepest drawdown of this cycle. Since October, investors have withdrawn approximately 100,300 BTC — translating into roughly $6.8 billion in added selling pressure during an already fragile market phase.

Derivatives show firmer footing

Positioning in futures markets suggests stabilization is underway. Open interest has climbed to $15.8 billion, indicating that the recent wave of deleveraging may be subsiding. Retail sentiment is also improving, with funding rates flipping from negative to flat or positive across major venues, reaching as high as 10% on exchanges such as Bybit and Hyperliquid.

Institutional conviction remains steady rather than aggressive, with the three-month annualized futures basis holding around 3%.

Options data shows a modest shift toward upside exposure. Over the past 24 hours, volume has been split 51% in favor of calls. However, demand for short-term protection remains elevated. The one-week 25-delta skew has widened to 17%, and the implied volatility term structure continues to display short-term backwardation.

This suggests traders are still paying a “panic premium” for immediate downside hedges, even as longer-dated implied volatility steadies near 49%.

Liquidation flows highlight ongoing volatility. Coinglass data shows $179 million in liquidations over the past 24 hours, with a 56% share from long positions and 44% from shorts. Bitcoin accounted for $59 million, ether $46 million, and other tokens about $16 million. Binance’s liquidation heatmap identifies $68,400 as a key level to monitor if prices extend higher.

Altcoins find relative strength

Altcoins outperformed during the latest rebound. Lending token MORPHO surged more than 12% overnight, while AI-focused payments token KITE gained 11%, extending its 30-day rally to 153%.

DeFi assets also participated in the rotation, with Jupiter (JUP) rising over 3.6% after touching a seven-day low earlier in the week.

Among broader indices, the CoinDesk Smart Contract Platform Select Index (SCPXC) led with a 2.25% gain over 24 hours, followed closely by the CoinDesk Memecoin Index (CDMEME), up 2.2%. The bitcoin-heavy CoinDesk 20 (CD20) advanced a more modest 1%, reflecting relatively restrained moves among major tokens.

Periods of consolidation often create space for capital rotation into higher-risk assets, as traders seek outsized returns while bitcoin, ether and XRP remain confined within established ranges.