Bitcoin breaks below $70,000 after overnight sell-off
Bitcoin fell below the closely watched $70,000 level overnight on Feb. 5, 2026, extending a broader downtrend and reigniting downside forecasts. On Bitstamp, BTC traded as low as $69,101 before attempting to stabilize, according to CoinDesk. Some analysts said the next major area of focus is $60,000, a level they view as a potential zone where buyers could try to form a bottom.The drop pushed bitcoin through a psychological threshold that often attracts heavy trading interest and can accelerate moves when it breaks. Selling continued as the wider trend remained negative, with market participants watching whether spot demand can absorb supply or whether another leg lower develops. Traders said the move under $70,000 also matters because it can shift short-term expectations from buying dips to selling rebounds.
Pressure builds after $70,000 gives way
Round-number levels such as $70,000 tend to concentrate stop orders, options interest, and short-term positioning, which can make price action abrupt when the level fails. Traders described the slide as a continuation of a recent pattern: rallies fade quickly, bids retreat, and sellers press into thinner order books. The Bitstamp print below $70,000 became a focal point because it signaled that dip buyers were no longer defending a line that many participants used as a reference point.Market participants also noted that psychological breaks can change behavior even without a single headline catalyst. When a well-known threshold is lost, some investors step back, waiting for clearer confirmation of support, while others reduce exposure to limit drawdown. That dynamic can widen intraday ranges and keep liquidity patchy, especially when traders are already positioned cautiously.
A decisive break can also force mechanical selling from strategies that reduce risk as volatility rises or as price slips below predefined bands. Even if those strategies are not the main driver, their flows can add momentum at the worst possible moment, turning a slow grind lower into a sharper drop. That is why traders often treat round-number failures as events that can influence positioning for several sessions, not just a single candle.
Downtrend backdrop keeps traders defensive
The move under $70,000 arrives during a period when risk appetite has been fragile and crypto has struggled to regain traction after repeated pullbacks. In that environment, short-term trading tends to dominate, with participants reacting to levels, flows, and volatility rather than long-horizon narratives. As price declines, some holders choose to de-risk, while tactical traders look to sell rebounds until the market proves it can hold support for more than a few sessions.Analysts who expect further weakness argue that bearish momentum can persist when new buyers hesitate to commit size and when confidence in quick bounces fades. They point to the way recovery attempts have repeatedly met selling pressure, leaving the market susceptible to another push lower if supply returns on even modest rallies. Others caution that sharp breaks can also set up violent snapbacks if selling exhausts itself and buyers step in aggressively at discounted levels.
With sentiment already pressured, traders said the immediate question is whether the market is experiencing a clean reset of leverage or a deeper re-pricing of risk. A leverage reset can produce fast drops followed by stabilization, while a broader re-pricing tends to be messier, with lower highs and repeated tests of support. The path often becomes clearer only after price either reclaims the broken level quickly or fails several rebound attempts.
Levels in focus as $60,000 enters the conversation
With $70,000 broken, traders will watch whether bitcoin can reclaim the level quickly or whether it turns into resistance on any bounce. A sustained move back above $70,000, combined with calmer intraday swings, would be one sign that selling pressure is easing and that buyers are returning with conviction. If the market fails to recover the threshold, attention is likely to shift to lower reference zones, including the $60,000 area that some analysts describe as a potential bottoming region.How price behaves near any widely watched support can be as important as the level itself. Traders typically look for signs that forced selling is fading, such as tighter spreads, fewer rapid flushes, and rebounds that hold rather than reverse immediately. Conversely, repeated failed bounces can encourage short sellers and prompt long holders to cut exposure, increasing the odds of a slower bleed toward the next round-number target.
For momentum to turn sustainably, market participants said bitcoin likely needs more than a brief relief rally. A durable shift would require evidence that demand is willing to absorb supply over several sessions and that volatility is cooling instead of escalating. Until then, traders expect price action to remain technically driven, with rapid moves possible around levels that many portfolios use for risk management.
Bitcoin’s break below $70,000 is a reminder that psychological thresholds can matter as much as macro narratives in a momentum market, and the next sessions will test whether buyers can rebuild confidence or whether the downtrend continues to dictate price action.
Editorial Team - CoinBotLab
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