Bitcoin (BTC) fell for the second straight day, dropping to around $68,500 after briefly touching $70,800 over the weekend. The pullback came as traders took profits following a recent rally driven by a softer U.S. inflation report.
The cryptocurrency is now about 45% below its all-time high of $126,300. Analysts say momentum has weakened as demand slows and leverage declines across the market.
Data shows that Bitcoin futures open interest has dropped to $43 billion, its lowest level since September 2024. This figure has fallen sharply from last year’s peak of $95 billion. Lower open interest usually signals that traders are reducing leverage and risk exposure.
Spot Bitcoin exchange-traded funds have also seen continued outflows. ETFs have lost more than $677 million this month, marking the fourth straight month of declines. In total, these funds have shed over $6.8 billion in the past four months, reflecting weaker institutional demand.
Market activity may remain muted this week due to the U.S. President’s Day holiday and the ongoing Lunar New Year in China. Lower liquidity can increase volatility and limit strong upward moves.
From a technical perspective, Bitcoin has formed a bearish pennant pattern on the daily chart. The price trades below key moving averages and remains under the Supertrend indicator, both signs of bearish control.
If the pattern confirms, analysts warn that Bitcoin could retest the year-to-date low near $60,000. A strong recovery above $70,000 would be needed to weaken the current bearish outlook.
