Bitcoin Reclaims $70,000 After Record Selloff, Rebounds Despite $1.1 Billion in Liquidations
Bitcoin Reclaims $70,000 After Record Selloff, Rebounds Despite $1.1 Billion in Liquidations
Bitcoin (BTC) demonstrated strong resilience by reclaiming the $70,000 level just one day after recording its worst single-day drop since 2022.
On February 6 local time, Bitcoin plunged below $60,000 during intraday trading, triggering forced liquidations of long positions worth approximately $1.1 billion. However, the price quickly rebounded on a surge of aggressive dip-buying. The sell-off was driven by overlapping factors, including regulatory uncertainty under the administration of U.S. President Donald Trump and a decline in the tech-heavy Nasdaq index, but once prices reached a critical threshold, institutional investors moved swiftly to accumulate.
BlackRock’s spot Bitcoin ETF, IBIT, confirmed ample market liquidity by posting a record-high trading volume of $10 billion, while large whales including Strategy treated the downturn as a buying opportunity. Lance Vitanza, an analyst at investment bank TD Cowen, assessed that Strategy has sufficient capital strength to withstand further declines in Bitcoin and raised his price target accordingly. Strategy CEO Phong Le also dismissed market concerns, stating that there is no risk of forced liquidation unless Bitcoin falls to $8,000.
Technical analysis indicated that the weekly chart’s Relative Strength Index (RSI) entering oversold territory served as the catalyst for the rebound, with Bitcoin successfully breaking through the psychological resistance at $69,000 to halt the downtrend. Funding rates falling to their lowest level since 2023 ahead of $2.1 billion in options expirations also eased market leverage, supporting the recovery. Analysts noted that Bitcoin is forming a hammer candlestick pattern, signaling a potential trend reversal.
Bitcoin is currently establishing a stable support level alongside solid trading volume, and expectations for price stabilization in the first half of 2026 are rising as institutional portfolio rebalancing concludes. Market participants believe whether Bitcoin can firmly hold the $70,000 level will be the key determinant of price direction in the coming quarter. Changes in open interest across major exchanges suggest both capitulation by bearish players and a regain of leadership by bulls.
*Disclaimer: This article is provided for investment reference only and does not take responsibility for any investment losses incurred based on this content. The information should be interpreted solely for informational purposes.*
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