Technical Analysis

Retail credit withdrawals on NEXO fell from $136.63 million in January 2025 to $22.04 million by November, then stabilized near $23.957 million in December 2025 and $23.965 million in January 2026. According to CryptoQuant/X, Aave's ETH borrowing peaked near 1.2 million in mid-2025 before easing toward 300,000 by early 2026, while NEXO broke below $0.901–$0.947.

Heading into early February 2026, Midnight (NIGHT), Hyperliquid (HYPE), and Monero (XMR) are bucking weak altcoin sentiment with accumulation and catalyst-led strength. Midnight's Q1 2026 'Kūkolu' phase was outlined in a January update, while HYPE's CMF turned positive and open interest climbed to $793M around Jan. 26–27. Monero's MFI points to fading sell pressure near $305 after an 11-day, 30% drop.

Crypto market sentiment slid to extreme fear as the Fear and Greed Index printed 11. On 4 February, U.S.-listed Bitcoin ETFs saw about $545m in net withdrawals, while Ethereum funds lost around $79m. Rising volatility and weak price action reinforced a risk-off tone across majors and altcoins.

In November 2021, Bitcoin set an all-time high near $69,000. On February 5, 2026, according to CoinMarketCap, BTC slid toward the low $60,000s and erased those gains as more than $1.5 billion in crypto positions were liquidated in 24 hours. The decline followed a leverage unwind, shifting focus to spot demand and the $60,000 area.

According to Cointelegraph, Bitcoin slipped below $63,000 on Thursday, marking its lowest level since November 2024 after a 30% retreat from a failed $90,500 push on Jan. 28. Deribit pricing shows March 27 $90,000 calls near $522, implying roughly 6% odds of a rebound, while $50,000 puts around $1,380 suggest about a 20% chance of deeper losses.

On February 5, 2026, Wall Street desks pivoted to downside scenarios as Bitcoin fell to $63,500 per TradingView, sliding from $70,000 earlier the same day and nearly 40% below its near‑$126,000 peak. Signals and cycle studies from 22V Research, Tallbacken Capital and Galaxy Digital highlighted potential levels near $60,000, $58,000, $45,000 and $35,200, alongside almost $4 billion in ETF outflows over three months.

On February 5, 2026, The Kobeissi Letter reported Bitcoin slipped below $66,000 for the first time since October 2024 and soon traded just above $65,000 amid "emotional" selling. Doctor Profit placed buy orders at $57k–$60k and plans to hold for 2–3 months, while XRP dropped nearly 20% in 24 hours to below $1.25.

At 14:00 UTC, Bitcoin traded at $69,313, down 7.9% on the day, as commentators described a capitulation phase and a transition from distribution to a multi‑month reset. Analysts highlighted key levels near $70,000, the mid‑$70,000s, and $78,000–$80,000, with downside risk toward $55,700–$58,200 amid thin liquidity and risk‑off flows.

At 5:30 p.m. UTC on February 5, 2026, data from CoinGlass showed 24‑hour crypto liquidations exceeded $1.45 billion, the fourth‑largest daily total in the past 90 days. About 311,000 traders were affected, with longs accounting for $1.24 billion; Bitcoin led at $738.83 million, followed by Ethereum at $337.45 million and Solana at $77.28 million.

On Thursday, Bitcoin slipped under $69,000 for the first time since Nov. 6, 2024, as analysts highlighted several classic capitulation signals. Heavy losses from short‑term holders, an "extreme fear" reading on sentiment gauges, and Bitcoin’s most oversold RSI levels since the 2022 bear market all suggested that seller exhaustion and a potential price bottom could be approaching. These conditions have historically preceded both short-term weakness and subsequent rebound phases in the BTC market.