Expert Says Bitcoin Crash to $60,000 May Have Marked a Market Low
Bitcoin’s violent slide toward the $60,000 level has reignited fears of a deeper bear phase, but fresh on-chain data and technical analysis suggest the market may be approaching a critical inflection point rather than the start of a prolonged collapse.
Key takeaways
- Santiment data shows whales and sharks cutting exposure while retail wallets continue accumulating dips.
- Bitcoin briefly fell to around $60,000 before rebounding above $68,000 amid extreme fear readings.
- Van de Poppe argues the high-volume flush below $60,000 may signal a short-term bottom, with the 200-week moving average now in focus.
After briefly dipping to around $60,000 for the first time since October 2024, Bitcoin staged a sharp rebound back above $68,000. The move came amid extreme fear across the market, with the Crypto Fear and Greed Index plunging to just 5, a level historically associated with panic-driven selling.
Whales reduce exposure as retail steps in
Santiment’s latest data shows a clear shift in Bitcoin ownership during the selloff. Wallets holding between 10 and 10,000 BTC have reduced their share of the total supply to 68.04%, a nine-month low. Over the past eight days alone, this cohort offloaded more than 81,000 BTC, adding sustained sell pressure as prices unraveled.
At the same time, smaller participants have moved in the opposite direction. Wallets holding less than 0.01 BTC now control 0.249% of total supply, the highest level in roughly 20 months. While the percentage itself remains small, Santiment notes that this steady accumulation reflects retail investors continuing to buy into weakness rather than capitulating.
According to the analytics firm, this combination of large holders distributing while smaller players absorb supply has historically been characteristic of bear-cycle dynamics, particularly in the absence of broad retail capitulation.
Capitulation signals emerge near $60,000
qwdwqFrom a technical perspective, the speed of the decline has been notable. Bitcoin fell from near $98,000 to sub-$60,000 levels in just two weeks, marking one of the sharpest corrections of the current cycle. Van de Poppe highlighted that the brief move below $60,000 was accompanied by the largest hourly volume spike of the entire downturn, a pattern often associated with local bottoms.
In a blink of an eye, we went sub $60K.
Massive correction. In just two weeks, #Bitcoin drops from $98K to $60K.
Now, the 200-Week MA is beneath us, and it's all depending on the coming days/hours.
Given that the hourly candle sub $60K was the largest volume candle, the… pic.twitter.com/bVtXh7anxW
— Michaël van de Poppe (@CryptoMichNL) February 6, 2026
He also pointed to the 200-week moving average sitting just below current price levels, emphasizing that the coming days could determine whether Bitcoin stabilizes or revisits lower supports. Historically, reactions around this long-term average have played a decisive role in defining macro trend shifts.
Momentum indicators remain deeply stretched
Despite the rebound toward $68,000, momentum indicators continue to reflect heavy damage. On lower timeframes, RSI dipped into deeply oversold territory during the selloff before attempting to recover, while MACD remains negative, signaling that bearish momentum has not fully dissipated.
Van de Poppe noted that if prices manage to push higher in the near term, the recent flush could leave behind a large downside wick, a structure commonly seen after capitulation events. Such formations have previously marked temporary or even cyclical lows, though confirmation typically requires follow-through buying and reduced selling pressure from larger holders.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
