Why Did Bitcoin Slip Below $70,000 Again… Is Leverage the Real Cause?
Why Did Bitcoin Slip Below $70,000 Again… Is Leverage the Real Cause?
Behind Bitcoin’s slide back below $70,000 after a roughly 1% drop in a single day were not macro factors so much as leverage-driven liquidations triggered in the derivatives market, compounded by the breakdown of key technical support levels.
According to cryptocurrency market data site CoinMarketCap on February 7 (local time), Bitcoin (BTC) traded at $69,482, down 1.70% over 24 hours. Over the same period, the total crypto market capitalization also fell 1.04%, showing a similar trajectory to Bitcoin.
The immediate catalyst for the decline was deleveraging in the derivatives market. Bitcoin liquidations totaled $182.19 million over 24 hours, while total open interest fell 10.11% in a single day. Price dropped below both the 7-day moving average of $73,742 and the 30-day moving average of $86,745, reinforcing technical weakness. The Relative Strength Index (RSI) fell to 32.8, entering oversold territory.
Deteriorating sentiment added to the downward pressure. The Fear & Greed Index registered 8, remaining in a state of “extreme fear,” while spot trading volume plunged 45% day-on-day to $64.51 billion over 24 hours. With insufficient new buying to absorb selling pressure, upside momentum remains limited.
The near-term inflection point lies at $68,160. This level corresponds to the 78.6% Fibonacci retracement of the recent advance, and if it holds, technical rebound potential toward around $74,500 remains. Conversely, a break below this support would raise the possibility of retesting the prior correction low of $60,074. The current average funding rate stands at -0.0064%, indicating that bearish bets still dominate across the derivatives market.
While downside pressure remains dominant in terms of market structure, the accumulation of oversold signals near major support levels introduces an element of uncertainty. In the short term, whether price can hold $68,160 on a daily closing basis, and whether spot volume and funding rates improve simultaneously, are seen as key indicators for assessing a potential reversal.
*Disclaimer: This article is for investment reference only, and no responsibility is assumed for investment losses based on it. The content should be interpreted solely for informational purposes.*
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