BTC Rebounds Above $69K After $2.6B Wipeout

Bitcoin trades near $68,000 as of February 7, 2026, holding a crucial support level after a 13% rebound from Thursday’s $62,700 low – the sharpest single-day drop since the FTX crisis in 2022.

This volatility erased over $1.4 trillion from the total crypto market cap in days, with $2.5 billion in liquidations across exchanges impacting 311,000 traders; Bitcoin longs bore $980 million of the pain, per CoinGlass.

Open interest surged 40% during the flush, driving funding rates negative and RSI to extreme oversold territory at 27 – the lowest since prior bear phases, signaling potential seller exhaustion. Yahoo Finance charts show the range from $62,702 close to intraday highs above $73,000 before today’s pullback test.

Technical Setup and Liquidation Impact

On-chain flow shows short covering drove the rally, not fresh demand, with ETF outflows at $272 million reflecting risk adjustments, though Binance’s SAFU Fund added $233 million in BTC (total $434.5 million).

Polymarket traders give 69% odds of sub-$70K in February but 54% chance above $100K by year-end; Finder’s crypto analysts average $138,300 by December. James Butterfill at CoinShares eyes $120K-$170K in late 2026 post-Fed chair transition.

Analyst Perspectives Post-Rebound

Altcoin Sherpa on X described the dip as a “brilliant retest” for accumulation, eyeing reversal if volume confirms.

BitBull Capital notes prior EMA breaks led to quick recoveries, while Nic Puckrin of Coin Bureau targets $74K next if $68K holds. On-chain flows reveal short covering dominated the snapback, with $272 million ETF outflows offset by institutional moves like Strive adding 13,130 BTC.