Bitcoin Price Analysis – BTC May Drop Below $60k Amid Selling Pressure

Highlights:

• Bitcoin is making lower highs in a bearish channel
• The latest rebound to $66,266 has been rejected as bears take control
• An extreme risk-off sentiment is driving investors away from Bitcoin 

Bitcoin (BTC) is in the red today, continuing the selloff that has characterized its price action this year so far. At press time, Bitcoin was trading at $65,740, down by 6.25$% in the day. The heavy sell-off has also been accompanied by a surge in trading volumes. In the last 24 hours, Bitcoin trading volumes have shot up by 82.31% to stand at $141.91 billion. 

Such a strong increase in trading volumes on a day that the price is dropping heavily points to panic selling. It goes to show that the average investor is choosing to cut their losses over holding Bitcoin under current market conditions. Looking ahead, there are multiple indicators that Bitcoin could be headed lower, and that prices below $60k could be on the horizon. 

One of them is data indicating the mass selloff of Bitcoin by large holders. On Thursday, February 5, multiple top exchanges sold more than $5 billion worth of Bitcoin. The amount is huge enough to move the market, and to make it worse, the selloff happened during the Asian trading session.

🚨 HUGE FUNDS AND EXCHANGES COORDINATED TO DUMP BITCOIN RIGHT NOW:

BINANCE SOLD 11,545 BTC
COINBASE SOLD 14,181 BTC
KRAKEN SOLD 7,835 BTC
BYBIT SOLD 7,800 BTC
WINTERMUTE SOLD 6,172 BTC

THEY DUMPED OVER $4 BILLION WORTH OF $BTC IN JUST 30 MINUTES

THIS IS 100% MANIPULATED DUMP!! pic.twitter.com/LoPbRSL9Gv

— ᴛʀᴀᴄᴇʀ (@DeFiTracer) February 5, 2026

The Asian session is traditionally known for low liquidity, and as such, the selloff triggered massive pressure on the price. Among the key impacts of the selloff was a liquidation of $625 million worth of Bitcoin longs. The liquidations added to the downside pressure and saw Bitcoin briefly touch $60k.

While some analysts believe this is manipulation on the part of the exchanges, the reality is different. The mass selloff simply means that Asian traders are panicking and getting out of risk-off assets. For context, the Korean stock exchange also recently experienced a sharp selloff that forced trading to be suspended. 

Tether FUD Adding to Bitcoin Selloff

The heavy selling around Bitcoin is also driven by FUD around Tether. Reports have been going around on social media that Tether had links to Epstein. Such allegations are enough to drive fear, and indeed triggered a brief Tether depeg to $0.998. This is the weakest price that Tether’s USDT has traded at in the last 5 years.

Given that Tether is the biggest player in the cryptocurrency market and is used for buying and selling Bitcoin, investors panicked. The result has been a heavy intraday selloff of Bitcoin, as investors seek safety not in stablecoins, but away from cryptocurrency in totality.

The Epstein files leak is a provenance report on crypto's early days. A ledger of hidden influence.

Key facts from the docs:
➠ 2015: Claim of control over 5 key BTC devs after Bitcoin Foundation's collapse.
➠ 2011-2018: Tether co-founder Brock Pierce tutored Epstein. "Pierce… pic.twitter.com/G5U4nIjgTN

— Agedor.art (@agedorgallery) February 3, 2026

Bitcoin Could Rebound As Institutional Infrastructure Grows

Despite the doom and gloom outlook for Bitcoin, the odds are high that the market could rebound soon. One of the factors likely to drive the rebound is the move by President Trump to sign a bill ending the government shutdown. This could put an end to the uncertainty coming from the US and send capital back into risk-on assets such as Bitcoin.

Market is still red

but PRESIDENT TRUMP SIGNED A BILL OFFICIALLY ENDING US GOVERNMENT SHUTDOWN

ending the shutdown removes a major overhang !

good for confidence, businesses, and markets which was a necessary step

The Game of Chess continues!

Government back leverages in… pic.twitter.com/7SDDbPjYXb

— Broke Doomer🔺 (@im_BrokeDoomer) February 4, 2026

Also, while FUD continues around Tether, Fidelity, one of the largest financial institutions in the world, has entered the stablecoins market with its Fidelity Digital Dollar (FIDD). Such moves are likely to inspire institutional capital to flow back into Bitcoin, especially now that it is trading at depressed price levels. 

Technical Analysis – Bitcoin Making Lower Highs In a Bearish Channel

Bitcoin is in a clear bear trend intraday and is making lower highs. This is an indicator that every attempt at a rebound is being aggressively sold off. At the time of writing, Bitcoin had made a rebound to the $66,266 resistance, but had been rejected.

If bears regain control with strong momentum, Bitcoin could drop to $60k or lower in the short term. On the other hand, if there is a rebound through the $66,266 resistance, a rally to $69,491 could follow. Of these scenarios, a correction to $60k and below is more likely. That’s because of the risk-off sentiment in the cryptocurrency market, and the fact that large holders continue to sell aggressively.