Bitcoin is seeing its largest single-day bullish candlestick in ten months today after dumping the hardest since the FTX collapse just yesterday.
Notably, BTC dropped a staggering 14% on February 5, its steepest decline in one day since collapsing 14.4% on November 9, 2022. The date coincided with the collapse of FTX, the US crypto exchange founded by Sam Bankman-Fried, after it faced a bank run.
Key Points
- Bitcoin is seeing its largest single-day bullish candlestick in ten months today after dumping the hardest since the FTX collapse on Thursday.
- BTC dropped a staggering 14% on February 5, its steepest decline in one day since collapsing 14.4% on November 9, 2022.
- The Thursday collapse sparked a broader crypto bloodbath, wiping out over $2.5 billion in leveraged positions.
- The correction was more leverage-driven, with no clear fundamental triggers.
- Bitcoin has bounced nicely, rallying over 11% from its Friday lows to reclaim $67,000.
- The major level under the radar is the $60,000 support level, and a break below could drive BTC to the mid-$50,000s.
Bitcoin Dumped, Then Bounced
Notably, the Thursday collapse sparked a broader crypto bloodbath. Bitcoin extended this momentum to earlier today, dropping to a low of $59,000, its lowest level since October 2024, dragging altcoins with it.
Ethereum dropped below $2,000, and XRP crashed near $2, forcing leveraged traders out of the market. In total, crypto liquidations in the past 24 hours exceeded $2.5 billion, with most of them involving long positions. Notably, the bloodbath forced the second-largest capitulation in two weeks.
However, today brought some relief for the broader crypto market. After the earlier scare, Bitcoin has bounced nicely, rallying over 13% from its Friday lows to reclaim $68,000. At the time of writing, this represented an over 8.6% growth from yesterday’s closing price, marking its largest green candle since April 9, 2025.
Leveraged-Driven Sell-Off
Notably, the correction was more leverage-driven. With no clear fundamental triggers, the crash stemmed from growing fear, doubt, and uncertainty, with investors panic selling as leveraged positions unwound.
The market is now resetting after the over-leverage wash. Volatility remains high, and investors are still cautious. Bitcoin spot ETF outflows further add to the caution. Notably, the investment products saw an outflow of $434 million on Thursday, marking their third consecutive intraday outflow.
The major level under the radar is the $60,000 support level, as market participants observe how Bitcoin reacts to it. So far, Bitcoin has seen a relief rally. Meanwhile, sentiment will turn bearish again if Bitcoin loses this support, with mid-$50,000 as the next possible target.