Bitcoin’s (BTC) Free Fall, Ethereum’s (ETH) Collapse, and More: Bits Recap Feb 6
Bitcoin and Ethereum have experienced significant price declines, with Bitcoin dropping to around $66,400, marking a 20% weekly decrease. Analysts are increasingly pessimistic, citing historical patterns that suggest further declines could occur, potentially as low as $57,600 or even $25,000. In contrast, Hyperliquid has shown resilience with a 60% price increase, but the overall sentiment remains bearish as large investors sell off their holdings.
The past few days have been nothing but a massacre for the majority of the leading cryptocurrencies. Bitcoin (BTC) crashed to levels last seen in 2024, whereas Ethereum (ETH) tumbled well below $2,000. Interestingly, Hyperliquid (HYPE) has shown notable resilience amid the crisis, with its price soaring by 60% in the past two weeks. In the following lines, we will touch upon these three cryptocurrencies and their latest performance. BTC Bleeds Out The primary cryptocurrency started the year on the right foot and at one point even challenged the $100K milestone. The past few weeks, though, have been brutal, with the price collapsing to as low as $60,000 on February 5. As of press time, BTC trades at approximately $66,400, representing a 20% weekly decline. Pessimism among analysts has since dominated, with many suggesting that bears may simply be stepping in. Ali Martinez recently reminded that since 2015, every time BTC has lost the 100-week simple moving average (SMA), it has failed to reclaim it quickly and continued toward the 200-week SMA. Based on his chart, the asset’s valuation could plunge to $57,600. For their part, PlanB (the anonymous creator of the Stock-to-Flow (S2F) model) presented several possible scenarios, including a devastating crash to $25,000. The recent behaviour of the large investors supports the bearish thesis. Santiment’s data shows that whale and shark wallets have been selling BTC over the past few days, while smaller players have increased their exposure. “This combination of key stakeholders selling and retail buying is what historically creates bear cycles. Until there is a sign of clear capitulation from the crowd, smart money will continue to gladly sell off their bags and not have any urgency to buy back in until the crowd has decided to move on from crypto,” the analysis reads. Meanwhile, the popular Fear & Greed Index (which measures the current sentiment of BTC investors) has fallen to 9, the lowest point since the summer of ...
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