Bitcoin at $70,000: When Will the BTC Decline Stop?

bitcoinistPublished on 2026-02-05Last updated on 2026-02-05

Abstract

Bitcoin is steadily declining towards the symbolic $70,000 mark, signaling a deeper issue of waning demand rather than panic selling. On-chain data reveals a structurally bearish market: the Bull Score Index has hit zero, spot volumes are low, and institutional flows have reversed, with US spot Bitcoin ETFs becoming net sellers. The negative Coinbase premium indicates sustained disengagement from US investors, while a contraction in USDT's market cap suggests reduced fresh capital entering the ecosystem. Technically, BTC is trading below its 365-day moving average, with key on-chain support between $60,000 and $70,000. The lack of immediate catalysts, such as Federal Reserve rate cuts, and political uncertainty further dampen sentiment. Bitcoin now behaves like a high-beta tech asset, correlating with equity market pressures. However, current data reflects an absence of buyers rather than excessive selling, potentially setting the stage for slow accumulation if prices reach long-term value zones. The end of the downturn hinges on a gradual return of liquidity and confidence, not just a technical signal.

Bitcoin continues to slide, slowly but surely, towards the symbolic $70,000 zone. After several failed stabilization attempts, the market now seems to be facing a more uncomfortable reality: waning demand. Behind the price drop, on-chain signals tell a deeper story.

Bitcoin Continues Its Fall and Approaches $70,000

For several weeks, BTC has been moving in a clearly unfavorable trend. Bounces exist, but they lack follow-through. Every recovery attempt is quickly sold, reflecting less a panic and more a lack of conviction. This is precisely what the latest on-chain data highlights.

CryptoQuant indicators show a market that has entered a structural bear mode. The Bull Score Index has fallen to zero, a level rarely seen outside of outright bearish market phases. Unlike a mere technical correction, participation itself is contracting. Spot volumes remain low, and liquidity is gradually tightening.

The reversal of institutional flows weighs heavily in the equation. US spot Bitcoin ETFs, major drivers of demand in 2025, are now net sellers. This shift creates a demand gap measured in tens of thousands of BTC over a year. The signal is all the more concerning as the Coinbase premium remains negative, suggesting a persistent disengagement from US investors.

Even the stablecoin market sends a clear message. The market capitalization of USDT is declining for the first time since 2023, indicating that fresh money is no longer entering the ecosystem at the same pace. Historically, without monetary expansion or an influx of stablecoins, bullish phases struggle to build.

Technically, the picture remains fragile. Bitcoin is trading below its 365-day moving average, and on-chain valuation zones are converging towards a major support level between $70,000 and $60,000. A zone that could attract buyers, but only if the context is right.

When Will the Bearish Movement on BTC End?

The question is not so much whether Bitcoin can rebound, but under what conditions a lasting floor can form. In the short term, the elements are missing. The market remains dependent on one key factor: overall liquidity.

From a macroeconomic perspective, expectations are clear. Prediction markets largely anticipate a status quo from the Federal Reserve at the April meeting, with little hope for a rate cut before June. This lack of a monetary catalyst limits appetite for risk assets, including Bitcoin.

The political context adds a layer of uncertainty. Recent statements by Donald Trump on monetary policy and his future Fed chair blur the reading of the calendar. Investors hesitate to anticipate a rapid easing, preferring to stay on the sidelines.

In this framework, Bitcoin is behaving more and more like a high-beta technology asset, sensitive to tensions in the stock markets. As long as this correlation persists, every pressure on tech stocks mechanically impacts BTC.

This does not mean an imminent capitulation, however. Glassnode data shows more of a demand vacuum than an excess of selling. In short, the market is not panicking; it is absent. This type of configuration can precede a phase of slow accumulation, especially if prices sink towards long-term value zones.

The end of the bearish movement will therefore depend less on an isolated technical signal and more on a gradual return of liquidity and confidence. On its side, Bitcoin Hyper is a Bitcoin layer-2 in presale that is managing to attract millions of $ in just a few weeks.

Related Questions

QWhat is the current price level that Bitcoin is approaching, and what does it symbolize?

ABitcoin is approaching the symbolic zone of $70,000.

QAccording to on-chain data from CryptoQuant, what does a Bull Score Index of zero indicate?

AA Bull Score Index of zero, as shown by CryptoQuant, is a level rarely seen outside of clearly bearish market phases, indicating a structural bear market.

QWhat is the significance of the declining market capitalization of USDT (Tether)?

AThe declining market capitalization of USDT indicates that fresh money is no longer entering the crypto ecosystem at the same pace, which historically makes it difficult to build bullish phases without monetary expansion or an influx of stablecoins.

QWhat major macroeconomic factor is currently limiting appetite for risk assets like Bitcoin?

AThe expectation that the U.S. Federal Reserve will maintain the status quo on interest rates, with little hope for a rate cut before June, is a key macroeconomic factor limiting appetite for risk assets like Bitcoin.

QAccording to the article, what is the primary driver needed to end the current bearish movement in Bitcoin, rather than a specific technical signal?

AThe end of the bearish movement depends less on an isolated technical signal and more on a gradual return of liquidity and confidence to the market.

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