The price of Bitcoin struggle to maintain its footing above $70,000 continued this Wednesday, following a drastic reduction in futures market activity across the globe. According to CryptoQuant data, the Bitcoin open interest has fallen by $55 billion over the past 30 days, reflecting a massive closure of positions that removed approximately 744,000 BTC from major exchange platforms.
This contraction in leverage occurs as the digital asset hits fresh year-to-date lows, fueling a debate among analysts over whether this retreat responds to internal crypto factors or external macroeconomic pressures. In this context, the capital exit from platforms like Bybit and Binance suggests that the market is undergoing an aggressive deleveraging process necessary to eventually stabilize the underlying price.
Massive liquidations and rising supply on centralized exchanges
The price drop below $75,000 acted as the primary catalyst for the liquidation of long positions, triggering a cascade of sales that was not limited solely to the spot market. Simultaneously, Bitcoin reserves on exchanges have risen by 34,000 BTC since mid-January, which increases the risk of higher selling pressure in the near term due to the growing available supply on trading desks.
On the other hand, cumulative volume delta (CVD) data indicates that sell orders continue to dominate the derivatives market, particularly on Binance, where a negative balance of $38 billion is currently recorded. Nevertheless, some market observers suggest that this level of capitulation could be the prelude to a consolidation zone if Bitcoin open interest manages to stabilize at its current liquidity levels.
Which support levels are analysts watching for February?
The relevance of this contract purge lies in the possibility of the price seeking a definitive floor within the $60,000 range, a key psychological level for institutional investors. Since the cryptocurrency is an asset highly sensitive to mempool conditions and global capital flows, the formation of a stable bottom could take between two and three months of constant lateralization.
Furthermore, analysts such as Axel Adler Jr. warn that if exchange reserves exceed 2.76 million BTC, the probability of seeing a crash toward $50,000 would significantly increase. According to expert Mark Cullen, despite the current weakness, a technical reversal toward $86,000 could occur if the market manages to absorb the excess supply recently injected into the centralized exchange wallets during 2026.
Looking ahead, the reduction in Bitcoin open interest clears the way for a less volatile and healthier market structure in the long run. While uncertainty dominates trader sentiment throughout February, the removal of excess leverage lays the groundwork for a potential solid recovery once institutional confidence is restored across the entire digital network.
