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Crypto World

Bitcoin price holds above $66K support after ETF comeback, can it reclaim $70K next?

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BTC/USDT 1-day chart.

Bitcoin bulls managed to defend the $66K support level as the leading crypto asset reversed part of its strong gains yesterday that was partly fueled by a strong uptick in ETF inflows.

Summary

  • Bitcoin price rebounded from above $66,000 support as its ETFs resumed an inflow trend.
  • A bearish flag pattern has formed on the daily chart.

According to data from crypto.news, Bitcoin (BTC) price surged nearly 7% to roughly $70,000 on Thursday as investor sentiment for risk assets was boosted following the release of a bullish Nvidia earnings report that triggered a surge in tech stocks.

Rising equity prices often act as a catalyst for a risk-on rotation. As market confidence strengthens, capital flows out of defensive positions and into high-beta sectors like cryptocurrency.

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The bellwether’s rally was also supported by a strong demand seen from institutional investors for spot Bitcoin ETFs. Data from SoSoValue shows that the 12 U.S. spot Bitcoin ETFs drew in $506 million in net inflows on Feb. 25, nearly double the figure recorded the prior day.

Shortly after its $70K rally, Bitcoin price had retraced nearly 4% to $66,641. This selloff was accompanied by a 2% drop in Nasdaq as investors booked profits after the stock’s notable run higher into the earnings event. The drawdown created a cooling effect across the broader financial landscape.

Bitcoin has since bounced back above $67,500 after bulls lodged another attempt to reclaim the $70K threshold. The momentum was supported by the $254 million inflows recorded by spot BTC ETFs on Thursday.

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Despite today’s bounce, some analysts believe Bitcoin could continue its larger downtrend that began in early January before any meaningful trend reversal takes shape.

According to analyst Ted Pillows, Bitcoin price appears to be forming a recurring fractal pattern that has historically preceded downturns.

BTC/USDT 1-day chart.
BTC/USDT 1-day chart | Source: X/TedPillows

“Once more people are convinced $60,000 was the bottom, the next dump to a new low will start,” said Pillows in a Feb. 26 X post.

Bitcoin has formed a bearish flag pattern on the daily chart. This pattern consists of a sharp price decline followed by a period of steady, upward consolidation within two parallel lines.

Bitcoin price has formed a bearish flag pattern on the daily chart.
Bitcoin price has formed a bearish flag pattern on the daily chart — Feb. 27 | Source: crypto.news

Historically, Bearish flags have confirmed the continuation of an ongoing downtrend after short periods of consolidation.

At press time, other technical indicators also seem to show bears are currently at an advantage. Notably, the Aroon Down was at 78.55, which is significantly higher than the Aroon Up, suggesting bears were still dominating the market trend.

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The Relative Strength Index, which has moved closer toward the neutral thresholds, also indicates that there is potential room for more downside pressure before the asset hits oversold levels.

For now, $65,000 remains the key support level to watch. The level has acted as a psychological defensive line for nearly three weeks and seems to be holding strong for now, as a large cluster of buy orders and long positions was seen accumulating in this range.

A sharp drop under the $65K mark could lead bears to target $60K, a psychological level bears tried to penetrate during the Feb. 6 crash.

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Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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Crypto World

CFTC Staff Share FAQ on Crypto Collateral

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CFTC Staff Share FAQ on Crypto Collateral

The US Commodity Futures Trading Commission has given more details on its expectations for the use of crypto as collateral amid a pilot program that the agency launched last year.

In a notice on Friday, the CFTC’s Market Participants Division and Division of Clearing and Risk responded to frequently asked questions that emerged from two staff letters issued in December that established a pilot allowing crypto to be used as collateral in derivatives markets.

The notice reminded futures commission merchants wanting to take part in the pilot that they must file a notice with the Market Participants Division “which includes the date on which it will commence accepting crypto assets from customers as margin collateral.”

The crypto industry has argued that crypto technology is best suited for 24-7 trading and instant settlement, and the CFTC’s guidance in December clarified what tokenized assets can be used as collateral, along with how to value them and calculate how much is needed for a trading position.

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CFTC aligns guidance with SEC

The CFTC made clear its guidance was to align with the Securities and Exchange Commission, as the two agencies work together on a regulatory framework for crypto.

The CFTC said that capital charges, the amount that must be held to cover losses, would be “consistent with the SEC” and that futures commission merchants should apply a 20% capital charge for positions in Bitcoin (BTC) and Ether (ETH), while stablecoins should get a 2% charge.

Source: Mike Selig

The notice added that futures commission merchants taking part in the pilot can only accept Bitcoin, Ether, or stablecoins for the first three months and must give prompt notice of any significant cybersecurity or system issues. They must also file weekly reports of the total crypto held across customer account types.

After the three-month period, other cryptocurrencies can be accepted as collateral and the reporting requirements will end.

Related: SEC interpretation on crypto laws ‘a beginning, not an end,’ says Atkins

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The notice also clarified that “only proprietary payment stablecoins may be deposited as residual interest in customer segregated accounts” and that futures commission merchants can’t accept other cryptocurrencies for that purpose.

The CFTC said that crypto and stablecoins cannot be used for collateral of uncleared swaps, but swap dealers can use tokenized versions of an eligible asset if it meets regulatory requirements and grants the holder the same rights in its traditional form.

Meanwhile, derivatives clearing organizations can accept crypto and stablecoins as initial margin for cleared transactions if they meet CFTC requirements regarding minimal credit, market, and liquidity risks.

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

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