"Roller coaster" market sentiment turns cautious after the surge, Bitcoin holds above $70,000 level

CryptoTimes APP notes that during Monday’s Asian trading session, Bitcoin remained above $70,000 after experiencing a “rollercoaster” ride over the weekend. Earlier in the trading session, this cryptocurrency briefly dipped to $69,991, but as of press time, its price held around $70,700.

This relatively calm situation contrasts sharply with last week’s intense volatility — on Thursday, Bitcoin plummeted to $60,033, hitting the lowest point since October 2024, before rebounding above $70,000 on Friday.

Traders remain on edge.

Caroline Morong, co-founder of Orbit Markets, said, “The crypto market has stabilized,” “but the market is still uncertain whether the worst is over. $60,000 is a key downside support level. If it breaks above $75,000, it could signal the end of the bear market.”

Extreme volatility is not new to cryptocurrencies, but despite a friendly stance from the White House toward digital assets and a surge in institutional adoption, Bitcoin has fallen from its peak of $126,000 in October last year. During periods of heightened geopolitical uncertainty, Bitcoin failed to serve as a safe haven, raising doubts about its role as “digital gold.”

Nevertheless, on February 6, the US Bitcoin spot ETF saw an inflow of $221 million, indicating that investors are seeking to “buy the dip” after dizzying sell-offs, a preliminary sign of renewed optimism.

Sean McNulty, head of derivatives trading in Asia-Pacific at FalconX, said, “The most accurate way to describe the current sentiment in the crypto market is cautiously optimistic,” “The current mood is not overly pessimistic.”

He added that last week’s turbulence “cleared out speculative bubbles,” allowing the market to “trade based on stronger fundamentals.”

Tony Sicamore, market analyst at IG Australia, said as long as Bitcoin stays above the 58,000 USD 200-week moving average (which was tested during Friday’s rebound), “there is room for the rebound to extend to initial resistance levels of $73,000 to $75,000.”

He stated, “Breaking through this level will pave the way for the rebound to extend to $81,000.”