 ▲ Bitcoin (BTC), decline / ChatGPT-generated image |
As Bitcoin halted its sharp decline around the $60,000 level and attempted a rebound, some in the market are cautiously suggesting that “the worst phase may be over.”
According to investment media outlet FXStreet on February 6 (local time), Bitcoin (BTC) slid to $60,000 in early Asian trading before slightly recovering to around $65,000. However, it has fallen more than 15% just this week, and the cumulative decline over the past three consecutive weeks exceeds 30%, leaving the bearish trend clearly intact.
The sharp drop was accompanied by large-scale liquidations. CoinGlass data shows that approximately $4.85 billion worth of positions were liquidated across the cryptocurrency market this week. At the same time, weakening institutional demand has become evident. Based on SoSoValue data, U.S. spot Bitcoin ETFs recorded net outflows totaling $689.22 million through Thursday, marking three consecutive weeks of capital outflows since late January. In contrast to the same period in 2025, when ETFs posted net purchases of 46,000 BTC, 2026 has seen net sales of 10,600 BTC, signaling a significant shift in the supply-demand environment.
The macro environment is also acting as a headwind. Risk-off sentiment strengthened amid signs of cooling U.S. employment data, with ADP job growth in January reaching only 22,000, far below expectations. Additionally, renewed military tensions between the United States and Iran in the Middle East have heightened geopolitical risks, further adding to Bitcoin’s correction pressure. Peter Brandt interpreted the recent decline not as retail investor panic but as a “campaign-style selloff” led by large participants, noting that the timing of a definitive bottom remains uncertain.
Nonetheless, some short-term recovery signals are emerging. According to CryptoQuant, as BTC slid toward $60,000, the Coinbase Premium Index surged into positive territory. This suggests that large U.S.-based wallets, or so-called whale investors, stepped in to buy during the downturn, leaving room for a short-term rebound. CryptoQuant CEO Ki Young Ju described this as the appearance of a “plunge protection team.”
From a technical perspective, caution remains warranted. On a weekly basis, BTC has fallen below its 200-week exponential moving average at $68,014, while the weekly Relative Strength Index (RSI) has dropped to 27, entering oversold territory. The Moving Average Convergence Divergence (MACD) also continues to signal a medium-term downtrend. FXStreet analyzed that if the weekly close falls below $65,520 (the 78.6% Fibonacci retracement level), the door would be open for a further correction toward the $55,777 area. At the same time, following the sharp drop, there is also the possibility of sideways consolidation with heightened volatility within a $60,000–$70,000 range.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses based on its contents. The information should be interpreted solely for informational purposes.*