Bitcoin $BTC ( ▼ 1.62% ) is having a rough start to the year, hovering in the mid to high $60,000 range after briefly topping $70,000 over the weekend. The cryptocurrency is down more than 14% in February, and if the month ends lower, it would mark five straight monthly declines and the worst first quarter performance since 2018.
Analysts point to a lack of fresh catalysts and tightening macro conditions as key reasons for the sluggish price action. Participation has thinned, volatility has cooled, and the market appears stuck in a grinding consolidation phase.
Key levels could decide the next big move
Technical analysts are watching two critical price zones. Support near $60,000 represents the most recent major low, while resistance around $74,000 could determine whether bullish momentum returns.
A break below support could trigger further selling, especially if economic data weakens expectations for interest rate cuts. On the flip side, a sustained move above resistance would ease fears of a deeper downturn and potentially reset the trend.
Sentiment swings from panic to optimism
Recent declines have put pressure even on long-term holders, with some analysts comparing current stress levels to the aftermath of the 2022 crypto crash. One macro strategist warned that bitcoin could fall dramatically if the broader “crypto bubble” continues to deflate.
Others disagree, arguing that underlying demand remains solid. Some analysts say reclaiming higher price levels could quickly reignite momentum and open the door to another run toward six figures.
For now, derivatives markets show stabilization rather than aggressive buying. That leaves bitcoin in a precarious position, waiting for a catalyst that could trigger a sharp move in either direction.