The price of Bitcoin is currently lingering around the $70,000 threshold as of early February 2026, marking a significant decline from the late-January peak close to $90K. This sharp selloff has created a climate of uncertainty, with traders now fixating on the critical support range between $60K and $65K. Should this level fail to hold, the potential for further market disruption could become a reality.
As traders assess the situation, it is evident that a number of support levels have already crumbled under pressure, prompting a cautious approach among investors. Many are choosing to remain on the sidelines, awaiting clear signs that a bottom has formed before re-entering the market.
Investor sentiment has turned notably pessimistic, exacerbated by the Crypto Fear and Greed Index, which remains entrenched in the “Extreme Fear” zone. Compounding the issue, capital outflows from spot Bitcoin ETFs have been noteworthy, with persistent withdrawals noted from September 2025 through early February.
A broader analysis of the Bitcoin price chart reveals a bearish technical structure. The 50-day Exponential Moving Average (EMA) has remained below the 200-day EMA since mid-November, indicating a prolonged bearish trend. Additionally, a recent short-term death cross between the 20-day and 50-day EMAs has further confirmed the prevailing weakness in the market.
Against this backdrop, the $60,000 to $65,000 zone is perceived as the last significant line of defense for Bitcoin. A decisive breach below this level could trigger a wave of forced selling, further amplifying market turbulence.
However, not all indicators are pointing towards an immediate collapse. On the daily timeframe, the Relative Strength Index (RSI) has started to recover from oversold conditions, currently resting near 32.5. This suggests that the intensity of selling pressure may be diminishing. Furthermore, while the Moving Average Convergence Divergence (MACD) remains in a bearish cross, the gap between its signal lines is narrowing, hinting at a potential slowdown in downside momentum.
Despite these signs of possible relief, the Chaikin Money Flow (CMF) remains negative, hovering around -0.05, indicating that unless it crosses above the zero line, any significant recovery in money flow to support a price bounce remains unlikely.
Derivatives data paints a concerning picture as well. According to Santiment, Open Interest has plunged from a 30-day high of 38 million to only 20 billion positions, as traders exit rather than invest new capital. A recent funding spike on February 6 appeared dramatic but was more reflective of a short squeeze than genuine market demand.
With buyers still hesitant, the market could face significant risks if new capital does not flow in. Even a minor dip could trigger liquidations, sending Bitcoin back toward lower support levels. For this month, a bounce towards $74,750 or possibly $84,900 might occur if buying pressure intensifies. Nevertheless, without reclaiming the 200-day EMA near $95,700, the market outlook remains firmly bearish.
