Bitcoin price today trades near $68,438, up 0.88% in the past 4 hours as the token extends its sharp recovery from the $60,133 February low. The move comes as Bitcoin spot ETFs recorded $506.51 million in net inflows on February 25, while a lawsuit against Jane Street triggered relief across crypto markets.
After weeks of losses and constant selloffs, Bitcoin made a surprising turnaround almost overnight. Prices surged, shorts were liquidated, and the mood shifted from despair to cautious optimism. According to traders on crypto social media, the driving force behind this change wasn’t a macroeconomic event or an ETF announcement, but rather a lawsuit that brought Jane Street into the limelight.
This legal action originates from a lawsuit filed by the administrator winding down Terraform Labs, which claims insider trading and market manipulation related to the firm’s collapse in 2022. Jane Street is mentioned as a counterparty that supposedly gained from insider information. The company has refuted these claims, calling the lawsuit an attempt to deflect responsibility for Terraform’s downfall.
Bitcoin spot ETFs recorded $506.51 million in daily net inflow on February 25, marking one of the strongest single days of institutional buying in weeks.
BlackRock’s IBIT led with $61.56 million, while Fidelity’s FBTC recorded $30.09 million. Total net assets reached $87.60 billion, representing 6.34% of Bitcoin’s market cap. The inflows represent a dramatic reversal from the sustained outflows that characterized much of February. When institutional money returns at this magnitude after weeks of selling, it typically signals that the worst of the distribution phase is over.
BTC Derivative Analysis (Source: Coinglass)
According to Coinglass, Bitcoin’s open interest increased 3.81% to $45.39 billion, while volume surged 23.10% to $87.48 billion. Long/short ratios show elevated bullish positioning at 1.58 on Binance and 1.56 on OKX.
Top trader positioning shows $26.90 million in longs versus $9.54 million in shorts on 12-hour timeframes, confirming large accounts are positioned for continued upside. The 24-hour liquidation data shows $37.83 million in long liquidations versus $195.60 million in shorts, confirming the rally triggered a massive short squeeze.
When short liquidations exceed long liquidations by this magnitude, it creates a self-reinforcing feedback loop as forced covering pushes prices higher and triggers additional stops.
BTC Price Dynamics (Source: TradingView)
The 4-hour chart shows Bitcoin testing the 0.5 Fibonacci retracement level at $69,873 after breaking above the 0.382 level at $67,575. The 20-period EMA sits at $66,611, the 50-period at $66,853, the 100-period at $68,463, and the 200-period at $72,820. Supertrend flipped bullish at $64,519.
The chart shows:
- Price testing 0.5 Fibonacci resistance at $69,873
- Supertrend bullish at $64,519 for first time in weeks
- 0.618 Fibonacci at $72,172 as next resistance
- Clean breakout above 0.382 level confirms momentum shift
Bitcoin dropped from above $126,000 in October to $60,133 in February, marking a 52% correction. The current rally to $68,438 represents a 14% recovery from those lows in just 48 hours. The Fibonacci levels provide clear resistance zones ahead: $69,873 (0.5), $72,172 (0.618), $75,445 (0.786).
A 4-hour close above $69,873 would confirm the 0.5 Fibonacci breakout and place $72,172 in range. The Supertrend flip to bullish signals this is more than just a relief rally.
The next move depends on whether BTC can hold $67,575 and break above $69,873.
- Bullish case: A close above $69,873 with sustained ETF inflows would place $72,172 in range as Jane Street lawsuit removes systematic selling pressure. Reclaiming $75,445 confirms full trend reversal.
- Bearish case: Rejection at $69,873 and a breakdown below $67,575 exposes $66,611, with further downside toward $64,519 if the rally proves temporary. Losing $67,575 invalidates the breakout.
