Bitcoin is going through a "total capitulation" episode this February 5, 2026, after breaking key psychological supports and entering what some analysts already call a new crypto winter.
Here is the summary analysis of the drop:
1. Current Price Status
Free fall: The price has breached the barrier of $63,000 - $64,000 USD.
Historical retracement: Represents a loss of nearly 50% of its value since the all-time high of October/November 2025 (when it peaked at $126,000 USD).
15-month lows: It is at levels not seen since October 2024, erasing much of the gains accumulated after Trump's victory.
2. Main Causes
Risk aversion (Risk-off): Geopolitical instability and fear of restrictive monetary policies from the FED (driven by the nomination of Kevin Warsh) have drained liquidity from speculative assets.
Reversal of institutional demand: Bitcoin ETFs in the U.S., which previously supported the market, are now experiencing massive outflows (over $544 million in one day).
Cascading Effect: The breakdown of support at $70,000 triggered a wave of forced liquidations of leveraged positions, accelerating the crash.
3. Technical Outlook
Supports to watch: The market is looking for a bottom near the 200-week moving average, located around $58,000 USD. Some more bearish analysts suggest that the bottom could be near $38,000 if the $75,000 level is not recovered soon.
Sentiment: The fear and greed index shows a state of "extreme fear," with market sentiment at its lowest point in two years.
