 ▲ Bitcoin (BTC) |
Bitcoin’s price faced downward pressure despite the absence of clear negative news specific to the asset, once again highlighting its nature as a risk asset sensitive to macroeconomic conditions.
According to cryptocurrency market tracker CoinMarketCap on February 11 (local time), Bitcoin (BTC) traded at $68,927.62, down 2.09% over the past 24 hours. During the same period, the total cryptocurrency market capitalization also fell 2.1%, mirroring Bitcoin’s decline.
Market participants interpret this correction not as an issue unique to Bitcoin but as a synchronized movement driven by broader risk-off sentiment. In fact, Bitcoin recently showed a high correlation of 76.6% with the Russell 2000 small-cap index, reflecting the impact of a macro-driven contraction phase affecting both equities and cryptocurrencies.
Deleveraging in the derivatives market further intensified the downward pressure. Total open interest across the market dropped 8.01% in a single day, with approximately $79 million in liquidations occurring, primarily in Bitcoin long positions. Long positions accounted for about 68% of total liquidations, amplifying the price decline as leverage was unwound.
Technically, price action continues around key Fibonacci levels. Bitcoin is currently trading below the 50% retracement level at $69,495 but above the 78.6% support level near $68,590. If this support holds, a short-term consolidation within a range is considered possible.
However, market sentiment remains fragile. The Fear & Greed Index stands at 9, indicating “Extreme Fear.” If sentiment fails to improve, a breakdown below $68,590 could lead to a retest of the previous low at $67,913. For now, Bitcoin’s price trajectory is likely to be driven more by macroeconomic conditions and shifts in investor sentiment than by asset-specific positive developments.
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