- Bitcoin has a large cluster of short liquidation holdings near $80,500, as buying rapidly accelerates upward price movements.
- Sellers have lost their momentum, and Bitcoin long-term holders are reaccumulating their positions above the $67K zone.
- Technical indicators show a balance between buyers and sellers. Volume is rising as the market transitions from panic selling.
Bitcoin is currently trading at $69,209.81, after an intraday decrease of -2.06%. Total weekly drawdown is at -12.30% per cent.
The drop in the value of BTC has been attributed to continual selling pressure as the market has adjusted due to the early February liquidations.
Buyers are supporting prices above $60,000, and accumulation activity is taking place. There are many concentrated amounts of short positions, $80,500.
This suggests there may be increased volatility from traders adjusting their positions.
Selling pressure drives the early February decline
Bitcoin opened February trading above the $80K level, although the market structure was already weakening. Lower highs formed on short timeframes, and selling pressure steadily absorbed weak buying interest across major exchanges.
On the other hand, large holders sold into strength while retail participation gradually declined. Volume increased on red candles, confirming that exits dominated activity and there were fresh long positions.
On February 5, Bitcoin dropped sharply toward the $60,000 level as liquidation pressure accelerated. This decline triggered cascading stop losses and forced closures of many leveraged positions across derivatives platforms.
Momentum indicators pointed to increasing downside risk before the breakdown became visible in price action. MACD readings confirmed that sellers pushed Bitcoin into the $60,000 range.
Despite this, long-term holders showed minimal reaction by remaining inactive during the decline.
Accumulation replaces panic-driven trading behavior
After the sharp selloff, Bitcoin entered a narrow consolidation range above the $60,000 zone. Meanwhile, green volume bars appeared during rebounds, as absorption of supply overpowered buying pressure.
Downside momentum reduced, and the RSI recovered from oversold and stabilized near neutral territory. This behavior indicated that buyers were entering positions gradually instead of chasing price aggressively.
Source: CryptoRank
The MACD has flattened near zero, indicating that large holders are quietly reaccumulating their positions. This transition suggests that the liquidation phase had largely completed its structural role.
Leverage and valuation shape the next market phase
Leverage data now shows a dense cluster of short liquidations forming near the $80,500 price level. This zone contains approximately $5.7 billion in cumulative short exposure across major trading platforms.
If Bitcoin rises into this range, forced buying could accelerate price movement through automatic liquidation mechanisms. Therefore, each liquidation would add market orders that could push prices higher in a short period.
Major exchanges, including Binance, OKX, and Bybi,t show similar leverage exposure above current price levels. As a result, liquidation pressure is distributed across several venues rather than isolated to one platform.
Meanwhile, valuation metrics, the P/E ratio has fallen to 0.6, reflecting extreme fear conditions. Bitcoin is trading well below its 200-day moving average.
In the past, similar levels showed up after sellers had exited and leverage was cleared.