Bitcoin extended its sell-off February 5slide down $70,000 and to levels last seen last 2021as selling pressure increased on the spot and derivatives markets.
At the time of writing, BTC was trading around $67,400more than decreased 7.5% on the dayaccording to data.
The move followed a sharp collapse among the Support zone of $72,000 on February 4which previously served as a short-term bottom during the January consolidation.
Daily trading volume rose as prices fell, suggesting this move was driven by forced selling rather than limited liquidity.
The latest decline also confirms a broader bearish market structure that has existed since Bitcoin failed to reclaim the $90,000 region earlier this year.
Source: TradingView
Large Bitcoin holders reduce exposure to weakness
Data in the chain points out that large investors are reducing their exposure as the recession accelerated. Data from Arkham shows that World Liberty Fi sold 73 WBTCworth approx $5.04 millionat an average price of $69,000.
The trade occurred during the early stages of the collapse below $70,000, indicating defensive risk reduction rather than profit-taking near market highs.
While the selloff isn’t big enough to move the market on its own, it fits with a broader pattern of capital draining from Bitcoin amid downward momentum.
Sentiment within the chain is deteriorating
Bitcoin’s Adjusted Net Unrealized Gain/Loss [NUPL] The metric has also continued to weaken. The indicator is now trending towards neutral and negative territory. It measures the total unrealized profit or loss of market participants.
Historically, declines in the NUPL toward zero or lower have coincided with periods of market stress and capitulation, with holders moving from unrealized gains to realized losses.
Source: CryptoQuant
The last time the average NUPL entered negative territory was in September 2023during a prolonged correction phase.
The current reading suggests that a growing portion of the market is now holding Bitcoin at or below cost. This increases the chance of further distribution if prices do not stabilize.
With previous support acting as resistance, Bitcoin faces a technically vulnerable situation in the short term.
A persistent inability to… $70,000 – $72,000 zone could open the door to further downward developments. At the same time, any relief meeting will likely be tested by air supply from trapped lungs.
Final thoughts
- Bitcoin’s drop below $70,000 marks a decisive decline from the price level last seen in 2021, reinforced by high volumes and prolonged liquidations.
- Data from the chain shows that large investors are reducing their exposure and unrealized gains are shrinking, indicating rising tension rather than speculative excesses.