Bitcoin Reclaims $70K as MicroStrategy Stock Surges 26% — Saylor Celebrates ’LFG’
Bitcoin rebounded sharply on Feb 7 after an early-February sell-off, reclaiming the key $70,000 psychological level. BTC fell below $61,000 on Feb 5 but completed a rapid V-shaped recovery, rising over 10% within 24 hours to a high near $71,458. On-chain signals show large holders buying the dip while retail holders remain cautious; a dormant whale reportedly bought 482 BTC near the low. Short-term holders’ realized price clusters around $72,000, creating near-term resistance. MicroStrategy (Strategy) holds 713,502 BTC with an average cost near $76,052; the company faced about $2.46 billion of unrealized losses when BTC dipped but saw its stock jump ~26% to $134 as the market recovered. Bitcoin spot ETFs have accumulated roughly $57.7 billion in net inflows since listing, though they recorded about $6.18 billion of net outflows between Nov 2025 and Jan 2026; ~62% of ETF holdings are underwater with an average cost near $85,000. Liquidity and liquidation data show about $1 billion in short positions below $80,000; clearing of $72k–$73k liquidations during the pullback may reduce immediate resistance, while a sustained break above $73.5k–$74k could trigger further short squeezes and open higher targets. Key technical levels to watch: support at $68,000–$65,000 and resistance at $73,500–$74,000. Overall, institutional dip-buying and a supply ’gap’ between $70k–$80k support a bullish near-term bias, but ETF outflows and high average ETF cost levels add medium-term risk.
Bullish
The news signals a bullish near-term outlook. BTC’s rapid V-shaped recovery back above $70,000, combined with institutional dip-buying (notably large MicroStrategy holdings and a 482 BTC whale purchase), indicates strong buy-side demand at lower levels. Cleared liquidations around $72k–$73k reduce immediate technical resistance, while a sustained break above $73.5k–$74k would likely trigger further short squeezes given ~$1B of short exposure under $80k. Although spot ETF net outflows and a high average ETF cost (~$85k) present medium-term headwinds, the current price action mirrors past recoveries where institutional accumulation and low-supply bands produced renewed rallies. For traders: expect higher short-term volatility with upside bias — monitor $73.5k–$74k for confirmation of continuation and $68k–$65k as key support for invalidation. Position sizing should account for ETF-related macro risk and potential rapid liquidations if momentum accelerates.