February 9, 2026 – Tokyo, Japan | Tapbit Research
Bitcoin staged one of its sharpest short-term recoveries in recent memory during the first week of February 2026, rebounding from a brutal test near $60,000 back above $71,000—a zone that had previously acted as strong support throughout late 2025. The V-shaped move followed one of the steepest drawdowns since October 2024, wiping out leveraged positions and triggering widespread risk-off sentiment across crypto and equities.
While retail panic peaked (Google search interest for “Bitcoin” reached its highest level in roughly 12 months during the drop), institutional players treated sub-$70,000 levels as a clear buying opportunity. Spot ETF inflows accelerated, large custodians added exposure, and on-chain metrics showed meaningful accumulation by long-term holders. This article breaks down the price action, institutional behavior, retail search surge, key technical levels, and what the rebound means for traders and long-term investors in early 2026.
Bitcoin Rebounds Above $71,000 After Sharp Sell-Off
Bitcoin entered February trading around $81,500. Over the next five days the asset suffered a steep ~26% correction, bottoming intraday near $60,000 on February 5–6 — one of the most violent short-term drops since the October 2024 correction from $108K.
Key phases of the sell-off and rebound:
- Feb 1–3: BTC broke below $78K psychological support on elevated volume → accelerated to $68,500–$70,000 range
- Feb 4–5: Weekend thin liquidity + weekend macro headlines triggered a flush to $60,008 intraday low
- Feb 6–7: High-volume capitulation cluster formed around $60K–$62K → aggressive dip-buying pushed price back toward $71,000–$72,000
- Feb 8–9: Price consolidated above $71K with declining selling pressure and rising funding rates turning positive again
The speed and depth of the drop (one of the sharpest since late 2024) triggered more than $16 billion in cumulative futures liquidations across major exchanges, predominantly long positions built during the late-2025 rally.
Institutions Treat Sub-$70,000 as a Buying Opportunity
While retail traders panicked (evidenced by Google search spikes), institutional flows told the opposite story. Spot Bitcoin ETF data showed net inflows resuming aggressively below $70,000:
- BlackRock (IBIT) and Fidelity reported their largest single-day inflows in weeks during the February 5–7 window
- Binance SAFU fund and several large custodians added meaningful BTC exposure on the dip (on-chain wallet clustering analysis)
- Vanguard-linked vehicles (via Strive partnership) and other traditional asset managers quietly accumulated, per Bitwise CIO Matt Hougan
Bitwise leadership described the sub-$70,000 zone as “a new crack at the apple” for institutions that had feared they missed the boat above $100K. Hougan noted on February 7:
“The institutions that sat on the sidelines at $100K+ are now deploying capital at levels they consider far more attractive from a long-term risk/reward perspective.”
This behavior aligns with historical patterns: institutions tend to step in during high-fear capitulation phases while retail sells into the panic.
Retail Interest Surges as Google Searches Hit a 12-Month High
Google Trends data shows search interest for the term “Bitcoin” reached its highest weekly score in approximately 12 months during the drop from ~$81,500 toward $60,000. The spike peaked on February 5–6 — exactly when price printed the intraday low.
This pattern is consistent across previous cycles:
- Retail curiosity (measured by search volume) surges during extreme volatility and fear, not during calm accumulation or steady uptrends
- Highest search interest often coincides with local bottoms or major capitulation points (late 2018, March 2020, November 2022)
- The current 12-month high reading suggests widespread mainstream attention — but not necessarily immediate buying pressure from new retail participants
Instead, the spike typically reflects a combination of panic (“Bitcoin crash”), curiosity (“what is Bitcoin”), and bargain hunting (“buy Bitcoin dip”).
Key Support, Resistance, and Risk Levels for Traders
After reclaiming $71,000, the following zones are now in focus:
- Immediate support: $70,000 (psychological + recent high-volume node)
- Next major support cluster: $68,500 → $65,520 → $62,800
- “Last line of defense”: $58,000–$60,000 (capitulation zone that held February 6)
- Deeper bear target (if broken): $55,000 → $45,000–$48,000 (worst-case extension)
- Near-term resistance: $74,000 → $76,000–$78,000 (prior breakdown zone)
- Medium-term resistance: $81,500–$85,000 (downtrend line from late 2025 highs)
RSI on the daily chart is deeply oversold (below 30) and showing early bullish divergence on the 4-hour timeframe — both conditions that have preceded relief rallies in past cycles. However, a failure to reclaim $76,000–$78,000 quickly could invite retests of $65,520 or lower.
What This Means for Long-Term Investors
For investors with a multi-year horizon, the current correction — while painful — does not yet invalidate the broader bull-market thesis:
- Institutions continue adding exposure below $70,000, signaling long-term confidence
- ETF product infrastructure remains intact (no mass redemptions or structural failure)
- Macro drivers (Fed pivot expectations, institutional adoption cycle) are delayed, not broken
- Bitcoin continues to behave like a high-beta risk asset correlated with tech/growth stocks during corrections
Long-term holders should view sharp drawdowns as potential accumulation windows rather than trend reversals — provided they maintain proper position sizing and avoid leverage during uncertainty.
Trading Strategies on Tapbit – February 2026
- Sign Up on Tapbit (0% maker fees)
- Deposit USDT or JPY via bank transfer / P2P
- Dip accumulation: DCA BTC/USDT on pullbacks to $68,500–$70,000 zone
- Relief rally entry: Long BTC/USDT perpetuals on confirmed reclaim of $74,000–$76,000 (20–50x leverage, isolated margin)
- Risk-off hedge: Long XAU/USDT perpetuals if macro/geopolitical fears intensify
- Risk control: Max 1–2% account risk per trade; trailing stops below recent swing lows
FAQs – Bitcoin Rebound Above $71,000 (February 2026)
Why did Bitcoin rebound from near $60,000?
High-volume capitulation cluster formed around $60K–$62K. Oversold RSI, positive funding rate shift, institutional dip-buying, and short covering fueled the bounce back above $71,000.
Are institutions really buying the dip below $70,000?
Yes — spot ETF inflows accelerated, large custodians added exposure, and analysts (Bitwise, others) describe sub-$70K as a “new crack at the apple” for players that missed higher levels.
What do record Google searches mean?
Search interest hit a 12-month high during the drop to $60K — classic retail curiosity spike during extreme volatility and fear, not necessarily immediate buying pressure.
Is Bitcoin still in a bull market in 2026?
Short-term bearish pressure persists, but institutional accumulation during corrections and intact macro adoption drivers (ETF infrastructure, corporate balance sheets) support the long-term bull thesis.
Final Thoughts: Opportunity vs Risk
Bitcoin’s sharp rebound from near $60,000 to above $71,000 — fueled by institutional dip-buying and a 12-month high in Google search interest — illustrates the classic fear-to-greed dynamic that has defined every major cycle. While short-term volatility remains elevated, the behavior of large players (adding exposure below $70K) and oversold technical readings suggest a relief rally or local bottoming process is underway.
Long-term investors should view corrections as potential accumulation windows rather than trend reversals — provided position sizing remains conservative and leverage is avoided during uncertainty. Short-term traders should prioritize key levels ($70K support, $76K–$78K resistance) and wait for confirmation before committing significant capital.
Trade Bitcoin rebounds & volatility on Tapbit:
Disclaimer: Cryptocurrency trading involves significant risk of loss. Prices are highly volatile and can change rapidly. Institutional flows, ETF data, Google Trends, and technical levels do not guarantee future results. This article is for informational purposes only and does not constitute investment advice. Always conduct your own research (DYOR) and never invest more than you can afford to lose completely.
