Bitcoin Hit $60K: The Key Support Levels Wall Street and Crypto Whales Are Watching

The total crypto market cap shrank to around $2.3 trillion, while the Fear and Greed Index crashed to 5 (extreme fear territory), which is almost the lowest read within the past 1 year.

Within a 24-hour period from February 5 to 6, 2026, Bitcoin fell roughly 13–18% from about $73,000 to around $63,000, while Ethereum dropped approximately 14% to roughly $1,848. These were the steepest single-day declines of the year, wiping out over $160 billion in market value amid panic selling. Trading volumes surged sharply, with Bitcoin’s 24-hour volume reaching around $142 billion, confirming a severe liquidity crunch.

This sell-off triggered a wave of forced liquidations. According to Coinglass, total liquidations across the market exceeded $2.59 billion over the past 24 hours, with long positions accounting for as much as 81%. The single-day liquidation total ranked as the 10th-largest on record, second only to the sell-off triggered by the April 2025 tariff crisis. More than 580,000 traders were liquidated during the plunge, and the cascading liquidations intensified downside pressure, creating a vicious cycle.

Market analysts cited a shift in macroeconomic expectations as a key driver. Concerns that Fed Chair nominee Kevin Warsh—viewed as more hawkish than Jerome Powell—would maintain a persistently tight policy stance unsettled traders. These factors, combined with a broader risk-off mood exemplified by tech-stock declines, collectively drained buying support from crypto markets.

On-chain and flow data reflected a clear lack of new buyers. CryptoQuant’s weekly report highlighted that Bitcoin’s “bull market score” had dropped to zero amid declining spot trading volumes. Meanwhile, the Coinbase Premium metric—an indicator of institutional demand—fell to its lowest level in a year, suggesting large holders were net sellers. Rising Bitcoin exchange reserves, which increased to approximately 2.752 million BTC from 2.718 million the prior week, also signaled mounting selling pressure.

Experts and data providers are currently debating whether this crash is a healthy "shake-out" or the beginning of a mid-term structural shift.

Jefferies says the selloff shows few signs of a near-term bottom despite bitcoin and ether nearing levels that often draw dip buyers. It views the move as a liquidity-driven correction, not a collapse in blockchain fundamentals, pointing to steady network usage and selective corporate bitcoin buying. The bank links the weakness to broader risk-off positioning and a rotation out of growth assets, with over $2 billion in long liquidations exacerbating volatility.

K33 Analysis stated that Bitcoin has retreated approximately 40% from its all-time high, with its price action once again mirroring the downward phases of past four-year cycles, sparking concerns of a bear market recurrence. However, the institution believes this downturn is structurally different from those in 2018 and 2022, making a peak-to-trough decline of around 80% less likely.

Vetle Lunde, Head of Research at K33, pointed out that although recent market behavior shares similarities with historical deep corrections, the current landscape features stronger institutional participation, inflows into compliant products, a more accommodative interest rate environment, and lacks a systemic deleveraging event like the one in 2022. He also mentioned that some "bottoming signals" are beginning to appear, including extreme stress readings in spot trading volume and derivatives markets, though these are not yet sufficient to confirm a definitive bottom.

Analysts at JPMorgan noted in a latest report that despite recent pressure on the cryptocurrency market due to risk-off sentiment and weakness in tech stocks, Bitcoin's appeal compared to gold is increasing. The analysts believe the ratio of Bitcoin's volatility to that of gold has fallen to a historical low of around 1.5, significantly enhancing Bitcoin's allocation value on a volatility-adjusted basis.

According to the report's calculations, for Bitcoin's market capitalization to match the scale of private sector gold investment (approximately $8 trillion), its price would need to reach $266,000. The analysts emphasized that this target is "unrealistic" for this year, but in the long term, once market sentiment reverses, Bitcoin's potential as a hedge asset will drive it in that direction.

Market Analyst Scient: Bitcoin is unlikely to form a bottom in a single day or week. A lasting market bottom likely requires two to three months of consolidation near major support zones, along with reference to longer timeframe indicators, to materialize. Scientists noted that whether this structure forms in the high $60,000 range or the low $50,000 range remains unclear. The analyst emphasized these scenarios are hypothetical, not predictions.

John Haar, Managing Director at Bitcoin financial services firm Swan Bitcoin: This decline is a "common" feature for the digital asset. "Just under four months ago, Bitcoin hit an all-time high of $125,000. Nothing has changed our long-term investment thesis for Bitcoin." He attributed the sell-off to macroeconomic factors, including President Trump's nomination of Kevin Warsh for Fed Chair, the impact of leveraged traders being washed out, and geopolitical tensions.

Michael Saylor, founder of MicroStrategy, emphasized that the company currently faces no immediate financial pressure. The company is not facing margin calls nor does it anticipate being forced to sell Bitcoin. MicroStrategy has also raised a $2.25 billion cash buffer through stock offerings, sufficient to cover interest payments and dividends for the next two years. However, if Bitcoin fails to rebound or investor demand for its stock dries up, the company's room for maneuver will continually narrow.

The market is going through a major shakeout, forcing traders to close positions. During times like this, analysts look for price levels where buyers are likely to step in and stop the decline.

Data shows many leveraged traders will be forced to sell if Bitcoin drops below $60,000, as on-chain data reveals a high concentration of "Long Liquidation" at around $60,000. If the price dips to around $58,000, it's called a "liquidity sweep" — think of it as the market clearing out weak hands before stabilizing. Historically, buyers have shown up at this level during past drops.

If the drop is more severe, the next key level is between $52,000 and $55,000. This is the average price that recent Bitcoin buyers paid. When the price falls to where people buy in, they're less likely to panic-sell, creating strong support. Reaching this zone would signal a complete market reset.

In the short term, whether the critical support level of $60,000 holds will determine Bitcoin's next move:

– If $60,000 holds: A technical rebound may occur, but rebound strength may be limited, as the market still needs time to digest panic sentiment

– If $60,000 breaks: The next support level may be near $55,000, or even below $50,000.

The recent crash signals a period of structural weakness, driven by institutional sell-offs, excessive leverage unwinding, and shaken market sentiment. The market has entered a deeper price discovery phase, making a swift V-shaped recovery unlikely.

While key support levels between $52,000 and $60,000 may provide a base, the overall trend suggests a needed cooling-off period. Investors should exercise caution, avoid trying to catch a falling knife, and wait for more stability, confirmed signals of accumulation before considering new long positions.