Bitcoin’s uneasy calm didn’t last long.
After steadying during Asian trading hours, the world’s largest cryptocurrency slid below $70,000 on Monday, reminding investors just how fragile sentiment remains. By 5:45 a.m. in New York, Bitcoin was down roughly 3% at $68,540, extending a volatile stretch that has kept traders glued to their screens.
The drop, while uncomfortable, was modest compared with last week’s chaos. On Thursday, Bitcoin plunged to $60,033, its lowest level since October 2024, only to stage a sharp rebound and claw its way back above $70,000 by Friday.
A Market Still Holding Its Breath
Despite the bounce, few are calling an all-clear.
“Crypto markets have stabilized,” said Caroline Mauron, co-founder of Orbit Markets, “but the market is still uncertain that the worst is over.” According to Mauron, $60,000 remains the critical support level, while a decisive break above $75,000 could finally signal the end of the bear market.
Until then, traders remain on edge—watching every dip and bounce for clues.
Volatility Comes Roaring Back
Last week’s selloff unleashed a fresh wave of turbulence. The Bitcoin Volmex Implied Volatility Index surged above 97%, marking its largest intraday jump since the collapse of Sam Bankman-Fried’s FTX in 2022.
Wild price swings are nothing new in crypto. But this downturn carries extra weight. Bitcoin has fallen sharply from its October peak of $126,000, even as the broader backdrop appears supportive—featuring a crypto-friendly White House and accelerating institutional adoption.
Perhaps most troubling for Bitcoin’s long-term narrative is its failure to behave like a safe haven. During a period of rising geopolitical tension, the digital asset has struggled to live up to its “digital gold” reputation.
Dip Buyers Step In—Cautiously
Still, optimism hasn’t vanished entirely.
In a tentative sign that confidence may be returning, US Bitcoin exchange-traded funds recorded $221 million in inflows on February 6, as investors moved in to buy the dip after the market’s dizzying selloff.
“The mood in the crypto market today can best be described as guardedly constructive,” said Sean McNulty, APAC derivatives trading lead at FalconX. Sentiment, he noted, is “not overly bearish,” with last week’s turmoil helping to flush out speculative excess and leave the market “trading on stronger fundamentals.”
The Levels That Matter Now
From a technical perspective, analysts are watching a handful of key markers.
Bitcoin recently bounced just above its 200-week moving average near $58,000, a level many see as a line between long-term bullish and bearish territory. As long as prices hold above it, the path higher remains open.
“There is scope for the rebound to extend toward initial resistance at $73,000 to $75,000,” said Tony Sycamore, market analyst at IG Australia. A clean break above that zone, he added, could pave the way for a move toward $81,000.
For now, Bitcoin is stuck in limbo—caught between lingering fear and cautious hope. Whether this latest dip proves to be another buying opportunity or the prelude to renewed pain will hinge on how it behaves around the levels traders know all too well.