Bitcoin staged a tentative rebound to about $70,854 on February 8 after plunging nearly 37% from its highs, leaving investors questioning whether the move marks recovery or a temporary pause.
The bounce followed a collapse to around $59,930 earlier in the month, driven by more than $1 billion in liquidations and heavy institutional selling that drained market demand.
Technical indicators remain firmly bearish, with all major moving averages pointing lower and the MACD in negative territory despite short-term signs of buying on hourly charts.
Spot US bitcoin ETFs offered limited relief after posting $330.7 million of net inflows on Friday, led by BlackRock, following three days of sharp outflows.
Data from CryptoQuant show bitcoin has broken below its 365-day moving average for the first time since March 2022, a signal historically associated with prolonged bear markets.
On-chain indicators reinforce the cautious outlook, with declining stablecoin supply, a negative Coinbase premium and falling trading volumes pointing to weak underlying liquidity.
With high US interest rates weighing on risk assets and institutional buyers stepping back, bitcoin now faces a critical test between holding above $68,000 or sliding back toward $60,000.