Bitcoin Holds Steady Above $70,000 After Wild Week
Bitcoin found stability above $70,000 on Monday after experiencing a tumultuous ride at the end of the previous week. The original cryptocurrency was trading at approximately $70,500 at 6:50 a.m. in London, showing little to no change from its opening value. The recent tranquility sharply contrasts with the tumultuous fluctuations of the previous week, where Bitcoin experienced a dramatic drop to $60,033 on Thursday, marking its lowest point since October 2024, only to rebound above $70,000 by Friday.
“Crypto markets have stabilised,” but “the market is still uncertain that the worst is over,” stated Caroline Mauron. “$60,000 is the main support on the downside. A breakthrough above $75,000 on the upside may signal the end of the bear market.” Last week’s selloff triggered a significant surge in Bitcoin volatility. The Bitcoin Volmex Implied Volatility Index surged past 97 percent, marking the most significant intraday rise since the downfall of Sam Bankman-Fried’s FTX in 2022.
Extreme volatility is a hallmark of cryptocurrencies, yet Bitcoin’s decline from its peak of $126,000 in October last year is notable, especially against the backdrop of a crypto-friendly White House and increasing institutional adoption. The inability to serve as a safe haven amid increasing geopolitical tensions has sparked skepticism about its role as a so-called “digital gold.” In a cautious indication of renewed optimism, US Bitcoin exchange-traded funds saw inflows of $221 million on Feb. 6 as investors aimed to capitalize on the dip after the market’s tumultuous selloff.
“The mood in the crypto market today can best be described as guardedly constructive,” stated Sean McNulty. “Sentiment at the moment is not overly bearish,” he stated, noting that the turbulence last week has “purged speculative froth” and positioned the market as “trading on stronger fundamentals.” As long as Bitcoin stays above its 200-week moving average of $58,000, which it rebounded from on Friday, “there is scope for the rebound to extend towards initial resistance at $73,000 to $75,000,” stated Tony Sycamore. “A move above this level would open the way for the rebound to extend toward $81,000,” he stated.
