In a stunning turn of events, Bitcoin has experienced a massive correction, plummeting from highs near $98,000 to below $60,000 in just two weeks, as highlighted by trader Michaël van de Poppe. This rapid decline has pushed BTC beneath its 200-week moving average, a critical long-term support level that often signals potential trend reversals in cryptocurrency markets. Traders are now closely watching the coming days and hours for signs of stabilization, with the hourly candle that dipped sub-$60,000 recording the largest trading volume in recent sessions. This surge in volume suggests a possible capitulation event, where panic selling reaches its peak, potentially marking a temporary low for Bitcoin prices.

Analyzing Bitcoin's Price Correction and Key Support Levels

The drop to sub-$60,000 represents a staggering 38% decline from the recent peak, underscoring the volatility inherent in BTC trading. According to Michaël van de Poppe, if prices manage a slight rally from here, we could witness a large wick on the charts, a common pattern in capitulation scenarios that often precedes short-term recoveries. From a technical analysis perspective, the 200-week MA, currently positioned below current levels, has historically acted as a strong support during bear markets, as seen in previous cycles like the 2018 and 2022 downturns. Traders should monitor key resistance levels around $65,000 to $70,000, where overhead supply might cap any upward moves. On-chain metrics further support this view, with exchange inflows spiking during the sell-off, indicating retail capitulation, while whale addresses have shown accumulation patterns at these lower prices, potentially setting the stage for a rebound.

Trading Volume Insights and Market Sentiment Shifts

Diving deeper into the volume data, the hourly candle below $60,000 not only had the highest volume but also coincided with elevated liquidation events across major exchanges, wiping out over $1 billion in leveraged positions on February 6, 2026. This kind of volume spike often correlates with market bottoms, as it exhausts selling pressure and invites bargain hunters. For traders eyeing entry points, consider BTC/USD pairs on platforms like Binance or Coinbase, where 24-hour trading volumes have surged past $50 billion amid the correction. Market sentiment, gauged by the Fear and Greed Index, has plunged into 'extreme fear' territory, a contrarian signal that has preceded rallies in past cycles. Institutional flows remain a wildcard, with reports of ETF outflows slowing down, suggesting that big players might be waiting for clearer signals before re-entering.

Looking at broader implications for cryptocurrency trading, this Bitcoin correction has rippled across altcoins, with ETH/BTC pairs showing relative weakness as Ethereum dropped over 30% in tandem. Savvy traders could explore arbitrage opportunities between spot and futures markets, where funding rates have turned negative, indicating bearish sentiment but also potential for mean reversion. Risk management is crucial here; setting stop-losses below $55,000 could protect against further downside, while targeting partial profits at $70,000 offers a balanced strategy. If the rally materializes as suggested, we might see BTC reclaiming the $80,000 level within weeks, driven by renewed buying interest. However, external factors like macroeconomic data releases could influence this trajectory, so staying updated on Federal Reserve announcements is essential for informed trading decisions.

Potential Trading Strategies Amid Bitcoin Volatility

For those navigating this volatile landscape, a multi-timeframe approach is recommended. On the daily chart, RSI indicators are oversold below 30, hinting at exhaustion and a possible bounce. Pair this with on-chain data showing decreased selling from long-term holders, and the case for a short-term uptick strengthens. Traders might consider scaling into positions around current levels, with a focus on high-liquidity pairs like BTC/USDT, where bid-ask spreads remain tight despite the turmoil. In summary, while the drop below $60,000 marks a significant correction, the high-volume capitulation and historical patterns point to opportunistic buying zones for patient investors, potentially leading to substantial gains as the market stabilizes in the days ahead.