Bitcoin [BTC] recovered from the $63,000 drop to reach a high of $69,988, before rebounding somewhat as the broader crypto market recovered.
At the time of writing, Bitcoin [BTC] traded at $68,409, up 5.12% from the daily charts. With the recent jump, BTC has reversed its short-term moving averages (9 and 21 MAs), indicating short-term upside momentum.
But despite this shift, the broader market structure remains weak.
Bitcoin spot volume hit 2024 lows
In his analysis states Donkerfost noted that Bitcoin spot volume fell to 2024 lows, driven by low market liquidity. The analyst warned that February 2026 is on track to end as the lowest month BTC trading volume since 2024.
Investors have become more cautious, which has resulted in a sharp reduction in risk-taking. At the same time, market liquidity has declined as both individual and institutional participants remain on the sidelines.
Source: CryptoQuant
To start, Spot trading volume has declined on all major exchanges. On Binance, volume fell from $198 billion to $75 billion.
Gate.io fell from $53 billion to $25 billion, while Bybit fell from $41 billion to $20 billion, each losing more than half.
In addition, institutional investors have shown less interest in market access, further reducing spot volume. In reality, most of these entities have closed positions, reducing exposure, as evidenced by Spot ETF inflows.
Source: Checkonchain
Data from Checkonchain showed that ETF trading volume fell from $14.07 billion to $4.4 billion, a drop of $9.6 billion. At the same time, total net inflows into ETFs fell from $61 billion to $54 billion, a decline of $7 billion.
Such a huge drop indicates that the market is in a cautious phase, where investors are preserving their capital and waiting for suitable conditions to deploy it.
When spot volume drops, speculators often turn to futures, allowing the market to maintain momentum. However, current market conditions are different as volumes in spot and futures markets have fallen simultaneously.
Source: Checkonchain
According to data from Checkonchain, total futures volume fell from $123 billion to $65 billion, a drop of $58 billion. This decline indicates a reduced risk appetite and risk-averse sentiment in the market.
What’s next for BTC?
Bitcoin has shown continued weakness as investors across the market have taken a step back, waiting for suitable market conditions.
As such, the market remains structurally weak and bearish sentiment dominates. However, in the short term, Bitcoin showed a recovering bullish sentiment.
For that reason, the Stochastic RSI made a bullish crossover and climbed to 75 at the time of writing, reflecting the strengthening upward momentum. At the same time, BTC jumped above its short-term moving averages (9- and 21-day MAs), confirming the short-term uptrend.
Source: TradingView
When these two momentum indicators flash bullishly, it indicates the likelihood of trend continuation in the short term. So if the recently observed demand continues, BTC will turn around $70,000 and target $73,700.
However, if the momentum fades as quickly as it emerged, BTC will break the $66,000 support, with $65,157 as the critical support level.
Final summary
- Bitcoin spot volume fell to 2024 lows amid reduced market liquidity.
- BTC recovered from USD 63,000 and rose to USD 69,988, indicating short-term bullish momentum.