After experiencing significant volatility in early 2026, Bitcoin has regained the key psychological level of $70,000 today (February 7th). Looking back at this week's price action, BTC has been under continuous pressure since February 5th, briefly falling below $61,000 to reach its lowest point since October 2024, and has fallen by more than 44% from its all-time high of $126,000 last October.
However, prices rebounded quickly after hitting bottom, surging more than 10% in 24 hours to a high of $71,458, demonstrating extremely strong "turnover support" in the low-price range.
Technical Analysis After the V-Shaped Reversal
Over the past week, BTC's price action has exhibited a typical pattern of "panic selling → strong rebound":
Prices found solid support in the $60,800 – $61,500 range and subsequently rebounded quickly. The $66,900 – $70,600 range, a previously confirmed high-confidence support area, has now been successfully recovered.
Short-term trend: BTC is currently attempting to stabilize above $70,000. A successful break above the $73,500 – $74,000 range would resolve the previously formed bearish "head and shoulders" pattern and open up upside potential. Conversely, failure to hold $68,000 could lead to a retest of the $65,000 level.
Despite a significant pullback from historical highs, many mainstream institutions remain bullish in the long term. JPMorgan Chase recently pointed out that the crypto market sell-off is nearing its end, with signs of bottoming out emerging; Standard Chartered Bank and Bitwise, among others, believe that the full-year target for 2026 still has the potential to reach $150,000 to $170,000.
On-chain data: Large investors are accumulating shares, while retail investors are observing.
According to the latest on-chain data analysis, the market is showing a trend of "large investors buying on dips and retail investors panicking and leaving the market," and the chips are undergoing a large-scale reshuffle.
There is a significant "supply vacuum" between $70,000 and $80,000, meaning that once the price stabilizes above $70,000, upward resistance will be relatively small, facilitating a rapid rebound. Recently, a whale that had been dormant for seven months bought 482 BTC at a price low, further confirming the large investor's willingness to buy on the buy the dips.
The realized price for short-term holders is currently concentrated around $72,000, a level that has shifted from previous support to current short-term resistance. Furthermore, Strategy (formerly MicroStrategy) holds 713,502 BTC, with an overall average cost basis of approximately $76,052 , and faced a paper loss of $2.46 billion when BTC fell to around $72,000.
Since its listing in January 2024, Bitcoin spot ETFs have seen a cumulative net inflow of approximately $57.7 billion . However, from November 2025 to January 2026, these funds experienced a net outflow of approximately $6.18 billion, marking the longest period of sustained outflows since their listing.
It is worth noting that about 62% of ETF funds are currently in a "paper loss" state, with an average holding cost of about $85,000, which is more than $15,000 higher than the current price.
Liquidity data shows that approximately $1 billion in short positions are concentrated below the $80,000 level. A further upward move above $74,000 could trigger a large-scale short liquidation, creating a secondary acceleration effect. Liquidation clusters around $73,000 and $72,000 have been cleared during this week's decline, reducing resistance for subsequent upward movement.
Michael Saylor: LFG!
Strategy, formerly known as MicroStrategy, the world's largest corporate Bitcoin holder, is facing a severe test. The company holds 713,502 BTC , with a total purchase cost of approximately $54.26 billion. After BTC fell below its average cost of $76,052, its unrealized losses widened to $2.46 billion, marking its first unrealized loss since October 2023.
Even more noteworthy is that Chairman Michael Saylor seemed relieved about Bitcoin's recovery today, as his company's stock surged 26% overnight, rebounding to $134, and he posted the message "LFG (Let's fxxking go)".
