According to CoinGlass data, Bitcoin saw a sharp liquidation spike as $59.11 million in short positions were wiped out within four hours, versus just $828,780 in longs, creating a 7,132% imbalance. Over the past 24 hours, shorts made up $102.44 million of $120.19 million in total liquidations, highlighting heavy bearish mispositioning, but analysts caution that a lasting trend change still depends on genuine spot demand after the squeeze.

Bitwise advisor Jeff Park argues that the sharp Bitcoin sell-off on February 5, 2026, when BTC briefly hit $60,000, stemmed from deleveraging in traditional finance portfolios rather than a crypto-specific shock. He says risk reduction in multi-asset strategies spilled over into hedged BTC positions and forced selling in products such as Bitwise’s Bitcoin ETF, even as spot BTC ETFs still recorded net inflows and prices rebounded in the following days. Park believes framing the move as a technical event tied to TradFi dynamics highlights Bitcoin’s maturation and may support renewed dip buying.

On Sunday, BTC/USD climbed to $71,000 and was up 20% versus Friday's 15‑month lows, according to TradingView, though intraday gains peaked near 3%. Analysts Filbfilb, Tony Severino and BitBull cautioned that final capitulation may still lie ahead, with one calling for a "real bottom" below $50,000 and Checkonchain citing a U.S. spot ETF cost basis around $82,000.

Bitcoin's price has fallen from a peak near $126,000 to the $70,000 region, with the Fear & Greed Index dropping into the 5–20 range as retail traders and Short-Term Holders sell at a loss. On-chain data shows STH supply shrinking from around 8 million BTC and STH-MVRV sliding to roughly 0.75–0.78, while whales cut longs and add shorts near $69,000, suggesting one more downside liquidity sweep is possible before a recovery base forms.

According to Strategy, it held 713,502 BTC valued at about $59.75 billion as of February 1, with a total cost basis of $54.26 billion and an average purchase price of $76,052. With Bitcoin near $60,000, the position sits below cost, even as 2025 delivered a 22.8% BTC yield and the quarter showed a net loss of $12.4 billion.

On February 7, Bloomberg Intelligence's Mike McGlone warned on X that Bitcoin's move below $70,000 points to mean reversion toward a heavily traded $64,000 area. He flagged $64,000 as a key support level based on repeated tests and concentrated volume. BTC was at $69,464, up ~2% over 24 hours but roughly -11% on the week.

Bitwise CEO Hunter Horsley told CNBC on Friday that Bitcoin's slide below $70,000 places it in a bear market and is offering institutions a fresh opportunity to buy at levels they thought they had missed. He noted Bitcoin was recently down 22.60% over 30 days and trading near $69,635, while Bitwise saw over $100 million in institutional inflows on Monday as the asset traded around $77,000. Horsley added that Bitcoin is currently moving in tandem with other liquid macro assets as investors sell broadly across markets.

Bitcoin is under pressure on the daily chart as a bearish 9-day and 20-day EMA crossover coincides with oversold RSI conditions, while the price trades well below these short-term averages. Order book data highlights a key battle around $69,000, with notable bid support near $69,201 and nearby ask walls just above that level, as traders watch resistance at $72,736 and support down to $60,649 for potential next moves.