Bitcoin Nears Critical Support Zone at $66K-$70K with Liquidation Risk Ahead

Key Insights:

• Bitcoin tests critical support zone at the $66K–$70K level after a 7.50% drop in 24 hours.
• $545 million in Bitcoin ETF outflows signal reduced institutional interest and possible further selling pressure.
• Bitcoin’s weekly RSI drops to 28, suggesting ongoing selling pressure and risk of deeper correction.

Bitcoin has fallen sharply in recent days and is now testing a key support range between $66,000 and $70,000. The cryptocurrency is showing signs of technical weakness after a strong rally in late 2024.

As of the time of writing, Bitcoin was trading at $70.36 with a 24-hour trading volume of $88.205B. The token dropped 7.50% in the last 24 hours.

Bitcoin Price Weakens and ETF Outflows

Bitcoin is now trading around the $70,000 mark, its lowest level since November 2024. Based on Tedpillows, this puts the asset near a key technical support zone between $66,000 and $70,000. Traders are watching this area closely, as a breakdown could trigger more selling.

The price dropped after failing to hold earlier support levels. Several large investors have accumulated in this range. If cryptocurrency breaks below it, a deeper correction may follow.

According to SoSoValue, spot Bitcoin ETFs in the U.S. saw net outflows of $545 million on February 4. BlackRock’s IBIT ETF had the largest withdrawal, losing $373 million in a single day. This marks one of the largest daily outflows since spot ETFs launched.

ETF activity had supported Bitcoin’s recent uptrend. Now, these withdrawals are seen as a pause in institutional interest. High-volume selling contributed to the asset’s sharp move downward.

Technical Breakdown Signals and RSI Falling Further

However, Bitcoin has broken down from an ascending wedge, a pattern that often leads to lower prices. The price attempted to break out but was quickly rejected. After falling back into the wedge and breaking below the lower trendline, selling increased.

The move points to exhaustion in the recent uptrend. Key Fibonacci levels were also broken. Bitcoin failed to hold the 50% retracement near $87,700 and the 38.2% level at $78,600. It is now testing the 23.6% retracement near $67,300.

A drop below this point could send the price toward $60,000 or even $50,000. Traders believe this is the last support level from the current cycle.

The weekly RSI has dropped to 28, showing that the asset is now in oversold territory. The RSI shows no bullish divergence, which means selling pressure remains strong. There’s a real risk of heading toward the 300-week EMA if we lose this area.