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Bitcoin Slides Below $70,000 After Breaking Key Support

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Simon Peters, Crypto Analyst at eToro

Editor’s note: eToro crypto analyst Simon Peters outlines the forces behind bitcoin’s sharp pullback from its October 2025 highs, pointing to a broader risk-off environment, leverage unwinds, and fragile investor sentiment across global markets. The commentary focuses on key technical and on-chain indicators now in focus, including long-term support levels and valuation metrics that have historically marked major market bottoms. As bitcoin trades under renewed selling pressure, the analysis frames the current correction within past cycles, while highlighting the conditions that could help stabilize prices if macro and market dynamics begin to shift.

Key points

  • Bitcoin has fallen sharply from its October 2025 peak amid global risk-off sentiment.
  • Liquidation of leveraged positions has intensified downside pressure.
  • The 200-week moving average is being watched as a potential long-term support level.
  • Historical cycles show similar corrections in 2015, 2018, 2020, and 2022.
  • On-chain MVRV Z-score signals bitcoin may be nearing long-term fair value.

Why this matters

The analysis offers a timely snapshot of market psychology as bitcoin navigates one of its deepest post-ETF drawdowns. For investors and builders, long-term indicators like the 200-week moving average and MVRV Z-score provide context beyond short-term volatility. In a market increasingly influenced by macro conditions and institutional flows, understanding where leverage resets and valuation metrics converge is key to assessing whether the current correction is a pause or a potential inflection point.

What to watch next

  • Bitcoin’s behavior around the 200-week moving average.
  • Evidence of reduced leverage and easing forced liquidations.
  • Changes in ETF inflows as broader risk sentiment evolves.
  • Shifts in macro and geopolitical conditions impacting risk assets.

Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.

Abu Dhabi, United Arab Emirates – February 05, 2026: “After reaching an all-time high of $126,500 in October 2025, bitcoin has continued to slide as broader risk-off sentiment spills into the crypto market,” said Simon Peters, Crypto Analyst at eToro.

Simon Peters, Crypto Analyst at eToro
Simon Peters, Crypto Analyst at eToro

“Heightened geopolitical tensions, macroeconomic uncertainty and disappointing earnings forecasts have led investors to reassess risk assets, including technology stocks and crypto, while the liquidation of leveraged long positions has further accelerated the downturn.

“After breaking multiple support levels, bitcoin is now trading just below $70,000 and remains under significant selling pressure.

“From a technical perspective, analysts are closely watching bitcoin’s 200-week moving average as a potential area where the price could find a bottom. Historically, this level has acted as strong support following major corrections and bear markets in 2015, 2018, 2020 during the Covid pandemic, and most recently in 2022.

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“Could history repeat itself in 2026? It remains to be seen. Once leverage is flushed out of the system, selling pressure eases and ETF inflows resume, this could help stabilise prices and signal the end of the current correction.

“From an on-chain perspective, the widely used MVRV Z-score — which assesses whether bitcoin is trading above or below its fair value — is also pointing towards a potential long-term buying opportunity.”

Media Contact:
PR@etoro.com

About eToro

eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we’ve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre here for our latest news.

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Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Crypto World

Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday

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Oil prices jumped more than 3% on Monday, pushing Brent crude above $116 a barrel. West Texas Intermediate (WTI), the US benchmark, climbed to roughly $102 per barrel.

The latest rise comes as the US-Israel war on Iran entered its fifth week with no signs of abating.

Oil Extends Its War-Fueled Rally 

Several escalatory developments over the weekend fueled the surge. President Donald Trump told the Financial Times he could possibly seize Kharg Island, the terminal that handles roughly 90% of Iran’s crude exports.

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The US president struck a mixed tone on diplomacy with Iran, saying he was “pretty sure” of making a deal with Iran but conceding that talks could still collapse.

Meanwhile, Iran’s parliament speaker warned that Tehran would “set them on fire” when American forces arrived and promised consequences for US-allied nations in the region. 

The oil price surge is far from over, according to market analysts, who warn that the prolonged closure of the Strait of Hormuz could drive crude even higher.

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“A scenario in which the Strait remains closed for an additional month would be consistent with oil prices rising towards $150/bbl and constraints on industrial consumers of energy supply,” Bruce Kasman, global head of economics at JPMorgan, said.

According to Bloomberg, US officials and Wall Street analysts have also begun discussing the possibility of crude reaching $200 per barrel.

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Asian Stocks Tumble, Crypto Feels the Pressure

The energy shock rippled across Asia. Google Finance data showed that Japan’s Nikkei 225 fell over 4.5%, while South Korea’s KOSPI dropped more than 4.3% as import-dependent economies repriced risk.

The volatility has spread to crypto markets, with asset prices dipping early in the morning before rebounding. 

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“The market briefly crashed just now — ETH dropped below $1,940 and BTC fell below $65,000,” Lookonchain reported.

Oil above $100 per barrel continues to pressure risk assets by fueling inflation expectations and delaying anticipated Federal Reserve rate cuts.

The post Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday appeared first on BeInCrypto.

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

Lido’s decentralized autonomous organization is considering a one-off $20 million buyback of its governance token to address so-called price dislocation, which is at “historically depressed levels” relative to Ether, according to the DAO. 

The proposal, submitted Friday, seeks permission to swap 10,000 Lido Staked Ether (stETH) tokens, currently worth $20 million from the DAO’s treasury for Lido DAO (LDO), arguing that LDO is undervalued.

“This is not a routine fluctuation. It represents one of the most significant dislocations between LDO’s market price and its underlying protocol fundamentals in the token’s history.”

A token buyback of this size could boost the price of the token, which has fallen roughly 96% from its all-time high. In November, a Lido DAO member pitched an automated buyback mechanism for LDO to improve the token’s price. However, that proposal hasn’t been implemented.

LDO’s change in price relative to ETH since 2024. Source: Lido DAO

Lido DAO pointed out that LDO is trading at a steep discount to Ether (ETH) at a ratio of 0.00016, roughly 63% below its two-year median.

This is despite the protocol holding the top spot of the Ethereum liquid staking market, with a 23.2% share of staked Ether, according to Dune Analytics data. The protocol’s dominance has even been flagged as a centralization risk to the network in previous years.

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Share of Ethereum network validators. Source: Dune Analytics

Related: Ethereum builders propose ‘economic zone’ to tackle L2 fragmentation 

LDO is currently trading at $0.30, down 95.9% from its $7.30 high set in August 2021, according to CoinGecko data. LDO’s $255 million market cap makes it the 141st largest token by value at the time of writing.

“That dislocation is not justified by a proportional deterioration in protocol performance,” Lido DAO said. 

Lido DAO proposes buying stETH in batches

Lido DAO proposed buying up to 10,000 stETH in smaller batches of 1,000 to buy LDO. 

Lido DAO said it would use limit orders or adopt a dollar-cost averaging strategy to avoid market volatility. 

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