Bitcoin stabilized above $70,000 on Monday, after a week in which BTC fell again and reached multi-year lows, dropping below the $60,000 level. In a single session, it managed to recover 12%.
Over the past week, the market exhibited extreme volatility, with sharp price swings both downward and upward. Bitcoin reached a 16-month low of around $60,033 on Thursday, before staging a strong recovery on Friday that pushed it back above $70,000. This volatility highlighted a market highly sensitive to flows and the macroeconomic context.
Following this rebound, prices tended to stabilize. Bitcoin traded around $70,500, suggesting a pause after days marked by extreme intraday movements. This initial consolidation indicates that the market is attempting to find a new equilibrium after the shock.
Technical indicators clearly reflected the intensity of the sell-off and the subsequent rebound. During the decline, the Relative Strength Index (RSI) fell to 16, entering a rarely seen oversold zone. At the same time, the Bitcoin Volmex implied volatility index surpassed 97%, underscoring the level of stress and perceived risk in the market.
Adding to this pressure was a relevant technical factor: the price break below MicroStrategy’s estimated cost basis, located near $76,000. This level, closely watched by many participants, acted as an additional selling catalyst during the sharpest phase of the correction, amplifying the downward movement.
The future of Bitcoin and how far it can recover
In the short term, the market appears to be defining key zones. The likely bottom range lies between $65,000 and $70,000, while the most sensitive support extends between $60,000 and $65,000. On the upside, immediate resistance appears near $75,000, a level that could halt any more ambitious recovery attempt.
The observed rebound was due to a combination of factors. On the one hand, there were bargain hunting opportunities following the sharp correction; on the other, there was a degree of stabilization in global risk appetite, further supported by regional political developments that boosted equity markets. In this context, Bitcoin exchange-traded funds in the United States saw inflows of $221 million on February 6, indicating the participation of some institutional buyers.
Looking ahead, attention will shift to US macroeconomic data. The employment figures expected on Wednesday and the Consumer Price Index report on Friday will influence expectations regarding the Federal Reserve’s interest rate policy and, by extension, risk appetite.
