Bitcoin experienced a sharp correction on Thursday, briefly dipping below $60,000, its lowest level since September 2024, before rebounding to around $70,000 the next day. It last hit an all-time high of $123,000 in October 2025.
“Bitcoin’s sharp drop marks its weakest stretch since late 2024, with the asset now down nearly half from its October 2025 peak as heavy liquidations and persistent ETF outflows intensify selling pressure. The repeated failure to sustain rebounds above the $70,000–$72,000 zone has reinforced a defensive market tone, while extreme fear readings and elevated volatility point to ongoing deleveraging,” Avinash Shekhar, Co-founder and CEO, Pi42, highlighted.
The drop to $60,000 represented a 17 per cent intraday swing, reflecting heightened volatility across the crypto market. The broader sentiment turned risk-off, with the Crypto Fear & Greed Index plunging to 5 or Extreme Fear, its lowest reading since mid-2023, according to Riya Sehgal, Research Analyst, Delta Exchange.
Vikram Subburaj, CEO of Giottus.com, said the sell-off was triggered by Bitcoin breaking below key technical levels. Glassnode data show it has fallen below the True Market Mean, a level seen as the average cost of actively traded coins, which typically turns into resistance once breached. At the same time, more recent buyers are now at a loss, increasing the risk of forced selling during sharp declines.
Institutional flows
He added that institutional flows have offered little comfort. Spot Bitcoin ETFs in the US recorded heavy net outflows earlier in the week, with February 4 alone seeing withdrawals of roughly $545 million. Markets are also bracing for a cluster of delayed US .data releases next week, including the January jobs report and CPI figures. Strong labour or inflation readings could push expectations for Federal Reserve rate cuts further out. If Treasury yields stay elevated and the dollar remains firm, it will be an unfriendly mix for crypto. Fed funds futures still point to rate cuts later in 2026, but traders remain cautious about pricing them in early due to persistent inflation pressures.
“Analysts flag $60,000-$63,000 as the nearest major support band. There was an interim buying interest seen earlier around $68,000-$70,000. On the upside, former support near $73,000-$75,000 has turned into immediate resistance. A sustained move back above that zone would be needed to stabilise the tape. Any failure to hold above $60,000 could expose deeper downside toward realised-price levels closer to the mid-$50,000s,” he said.
Overall sentiment is firmly risk-off, with tightening liquidity, weak buying interest, and macro uncertainty driving prices. Until ETF flows stabilise and US data clarify the Fed’s policy outlook, crypto markets are likely to stay under pressure.
Analysts said Bitcoin faces near-term resistance at $71,000–$72,000 and strong support around $58,000–$62,000. Holding above the $58,000–$60,000 band could lead to consolidation, ease volatility, revive confidence, and set the stage for a gradual recovery.
Published on February 6, 2026
