Bitcoin whipsaw wipes out nearly $300M in 24 hours; short-term bias turns bullish
Bitcoin (BTC) experienced intense volatility over the past week, forming a local high near $69,988 before plunging about 9.9% to a local low of $63,030. CoinGlass reported roughly $299.72 million in liquidations within 24 hours, with long and short positions roughly equally affected. After the sharp decline, BTC rebounded quickly and was up about 7.7% from the $63k low within 24 hours. Key technical developments support a short-term bullish view: the $62.9k support (daily close on Feb 5) was defended, BTC traded inside that day’s ’mother candle’ indicating consolidation, and the H4 structure reclaimed the previous lower high region and recovered the 78.6% Fibonacci retracement at ~$64.1k. H4 spot volumes showed healthy participation behind the rally, suggesting the move was not purely a liquidation squeeze. Risks remain—late Sunday volatility and upcoming New York session trading could set the weekly tone. Traders should watch the $62.9k support and H4 structure for continuation; the short-term bias is bullish while longer-term uncertainty persists.
Bullish
The article highlights several technical and market-structure signals that favor a short-term bullish outlook despite the large, rapid liquidations. Key reasons: (1) Defended support at $62.9k (a prior daily close) indicates buyers stepped in at a significant level; (2) Price has been trading inside the Feb 5 ’mother candle’, suggesting consolidation rather than a decisive distribution; (3) H4 structure reclaimed prior resistance/lower-high and quickly recovered the 78.6% Fibonacci retracement (~$64.1k); (4) H4 spot volumes showed healthy participation behind the rally, implying genuine buying interest beyond mere squeeze-driven liquidations. Historically, similar episodes—sharp intraday drops followed by strong volume-backed recoveries that reclaim key retracement levels—have led to short-term continuation higher as stop-hunts exhaust sellers and attract momentum buyers. However, the large $~300M in liquidations signals elevated leverage and continued fragility: news shocks or lack of follow-through in the next NY session can reverse gains. For traders: treat the bias as short-term bullish while managing risk with defined stops below $62.9k and watching volume and NY session direction for confirmation. Longer-term structural risks remain, so position sizing and time horizon should reflect that uncertainty.