Bitcoin’s price fell below $70,000, with analysts noting large-scale deleveraging in derivatives markets adding to selling pressure. Over $55 billion in open interest was closed in 30 days, while inflows to exchanges increased available supply. Market observers debate whether a deeper correction is ahead, with some watching key support levels.
Bitcoin continued to struggle below the $70,000 mark. The sell-off coincided with futures market liquidations and a significant drop in market leverage.
Data shows around 744,000 BTC in open interest, worth over $55 billion, was closed across major exchanges like Binance, Bybit, and OKX in the past month.
This indicates widespread position closures, or deleveraging, is a driving factor. Onchain analyst Boris highlighted that market sell orders continue to dominate, with Binance‘s derivatives CVD sitting near negative $38 billion over six months.
Meanwhile, Bitcoin inflows to exchanges surged, totaling roughly 756,000 BTC in January alone. Analyst Axel Adler Jr. noted exchange reserves have risen by 34,000 BTC since mid-January.
He warned continued growth could increase near-term selling pressure. “A complete capitulation is yet to take place, which may happen at lower price levels,” Adler stated.
Market analyst Scient said durable market bottoms may require months of consolidation near key support zones. “Whether this structure forms in the high $60,000 range or the low $50,000 level remains unclear,” they noted.
Trader Mark Cullen continues to see potential downside toward $50,000 in a broader macro scenario. He expects a short-term reversion toward higher prices after Bitcoin swept weekly lows.
