According to the latest report published by cryptocurrency exchange Bitfinex, Bitcoin price may continue its consolidation process in the “accumulation” range defined between $60,000 and $69,000.
The report said the Feb. 5 pullback constitutes the deepest correction in the current cycle, noting that market volatility has reduced and momentum has weakened. This indicates a shift from a sharp liquidation-driven decline phase to a more balanced market structure.
According to the report, on-chain data shows that much of the recent decline was absorbed in the demand zone between $60,000 and $69,000. Investors who bought in this price range would be close to their base price and avoid an acceleration in selling pressure. This situation would have stabilized the price, supporting a sideways trend.
On the institutional side, the picture does not yet indicate a clear recovery. Last week, there was a net outflow of around $166 million from Bitcoin ETFs, while redemptions of Ethereum products reportedly continue. Although the limited inflows observed at the end of the week indicate near-term stability, overall liquidity conditions remained weak.
It was also indicated that the realized profit/loss ratio continues to narrow towards historically defensive levels and capital expansion within the network remains limited. Positions in derivatives markets have normalized and funding rates are at neutral or slightly negative levels. According to the report, this outlook reduces the risk of liquidation while limiting the possibility of a rapid and sharp rise in prices.
According to the report, a lasting and powerful breakthrough requires a significant recovery in spot demand and stronger institutional participation. Otherwise, Bitcoin is expected to continue its consolidation process within its current absorption range.
*This does not constitute investment advice.
