Analysts Warn Bitcoin Could Fall Further After Major Sell‑Off
Bitcoin (BTC) fell sharply to around $60,000 before recovering to about $70,667 after a major sell‑off that marked its lowest level in roughly 17 months. Analysts attribute the decline mainly to heavy selling by large holders (whales) who shifted from accumulation to net selling, and to significant outflows from spot Bitcoin ETFs during late January and early February. Jefferies analyst Andrew Moss highlighted that ETF outflows during weeks of Jan 19 and Jan 26 were among the largest since launch, with another wave of withdrawals on Feb 4. Deutsche Bank and independent analysts noted this was BTC’s worst single‑day drop since the November 2022 FTX collapse. Some observers, like Sygnum CIO Fabian Dori, suggest the market may be nearing “peak fear” and could be close to exhaustion, while others warn bottoms can take from one month up to a year to form. At the time of reporting BTC had rallied ~10% in 24 hours to trade near $70,667. Key takeaways for traders: whale selling and ETF outflows are primary near‑term downside drivers; retail dip‑buying appears weak; historical patterns leave room for protracted corrections even after sharp rebounds.
Bearish
The article identifies two concrete, ongoing supply-side pressures: concentrated selling by large holders (whales) and material net outflows from spot Bitcoin ETFs. Both factors increase circulating supply and reduce natural demand support, which are classic drivers of additional downside. Historical parallels (e.g., post‑FTX 2022) show that when institutional or concentrated holders pivot to selling, price recoveries can be short‑lived and followed by extended corrections. Weak dip‑buying from retail and the size of ETF redemptions increase the probability of further declines in the near term. Short-term impact: elevated volatility and downside risk — traders should expect continuation of sell pressure, possible retests of lower support levels, and higher liquidation risk for leveraged longs. Long-term impact: depends on whether selling is transient (exhaustion and capitulation leading to accumulation) or sustained (extended crypto winter). Risk management actions for traders: tighten stops, reduce leverage, monitor on‑chain whale flows and ETF flows, and watch for signs of capitulation volume or renewed institutional buying before increasing exposure.