Bitcoin plunges to $60,000! The "Trump rally" has completely retraced, with the 200-day moving average acting as a potential support

Bitcoin accelerates to $60,000, with nearly $2.7 billion in liquidations across the network, and the “Trump rally” gains fully retraced. Analysts point out that the 200-day moving average is a key support level, but due to thin liquidity, no clear bottoming signal has yet appeared.

Bitcoin drops to $60,000, with $2.7 billion in liquidations worldwide

Due to continued pressure in the risk asset markets, Bitcoin ($BTC) has accelerated its decline from last night to today, dipping as low as $60,142, then oscillating around $64,000.

This wave of decline triggered a massive leverage wipeout, with total liquidations in the global cryptocurrency market approaching $2.7 billion, including $2.3 billion in long (buy) orders.

This is the worst single-day decline since the FTX exchange collapse in November 2022, with a drop of over 10% in the past 24 hours.

Bitcoin outflows of 6.6% during the same period show relative resilience

Meanwhile, Bitcoin spot ETF investors have shown unexpected resilience. Bloomberg ETF analyst Eric Balchunas said that although Bitcoin has fallen more than 40% from recent highs, the funds flowing out of Bitcoin ETFs during the same period only account for 6.6%.

He analyzed that ETF investors generally view Bitcoin as a small part of their asset allocation (about 1% to 2%), and their overall portfolios benefit from strong stock market performance, allowing them to better withstand cryptocurrency volatility without panic selling.

SoSoValue data shows that in the past seven days, U.S. Bitcoin spot ETFs have generally experienced outflows, with only February 2 seeing inflows of $560 million.

Bitcoin halves from its all-time high, “Trump rally” fully retraced

From the peak of $126,198 in early October 2025 to the near $60,000 low, Bitcoin has been halved from its high, with a total decline of over 50%, which also indicates that the gains since Trump’s election have been fully retraced.

Looking back at the presidential election on November 5, 2024, Bitcoin was around $67,800, and today’s price has fallen below that.

Although the Trump administration showed support for the cryptocurrency industry, including establishing a strategic reserve plan and easing regulations from the previous government, these policy positives clearly failed to sustain the coin’s high-level performance.

Crypto market maker Wintermute CEO Evgeny Gaevoy commented on February 4 that, he believes Bitcoin has lost its original cryptopunk spirit, and the recent decline finally frees us from the foolish frenzy of “Trump made us rich,” once again clearing out tourists and leaving only those who truly believe in the mission.

No clear bottoming signals yet, focus on the 200-day moving average

Regarding future developments, Adrian Fritz, Chief Investment Strategist at 21Shares, warned that current market liquidity is quite thin, and even small selling pressures can trigger violent volatility and chain liquidations. No clear bottoming signals have been observed yet.

He pointed out that from a technical perspective, the 200-day moving average will be a key focus, currently between $58,000 and $60,000. This area also overlaps with the average cost basis of Bitcoin holders and could serve as a strong support level.

André Dragosch, Research Director at Bitwise, noted that there are significant trading records between $58,000 and $69,000, further reinforcing this price range as an important demand zone.

However, Stifel analyst pessimistically predicts that, based on historical bear market declines, Bitcoin could even drop to $38,000 in extreme cases.

Currently, Bitcoin’s weekly RSI has fallen below 30, entering oversold territory. While historically this often signals a rebound, the market sentiment is deteriorating at an extremely fast pace, and investors should remain cautious of risks.