- The formation of a long lower wick on the weekly chart indicates a “flush out” event where panic selling was immediately met by institutional and whale-level accumulation.
- Holding the 2021 all-time high of $69,000 is now the primary objective for bulls; maintaining this level transforms old resistance into a multi-year floor.
- With $76 million in short positions recently liquidated, the path of least resistance has shifted toward the $81,000–$85,000 range as the market enters a relief rally.
The crypto analyst Michaël van de Poppe, founder of MN Capital, shared a compelling weekly chart of Bitcoin (BTC), declaring it as evidence of a “capitulation candle.” This technical pattern, characterized by a sharp drop followed by a swift recovery—forming a long lower wick—suggests that sellers have exhausted themselves, paving the way for buyers to step in. Bitcoin trades around $70,300, up about 1.5% in the last 24 hours, recovering from a recent flush that saw prices dip below $69,000.
Support at $69,000: Why the 2021 ATH is the Critical Fortress
The chart, spanning from 2023 to projected 2027 levels, illustrates Bitcoin’s parabolic rise through 2025, peaking near $126,000 before a corrective pullback in early 2026. The recent red candle represents a capitulation event, where panic selling during a weekend—typically a low-liquidity period—met aggressive buying, as evidenced by the wick reclaiming higher ground.
Van de Poppe emphasizes that holding above the 2021 ATH (approximately $69,000) is pivotal, acting as a psychological and technical fortress. Breaking this could invite further downside, but the current bounce hints at resilience.
This analysis aligns with broader market dynamics. The crypto ecosystem has faced headwinds from macroeconomic factors, including upcoming US CPI data on February 11, which could influence Federal Reserve policies and risk appetite. Gold’s surge to $4,963 reflects a flight to safety, yet Bitcoin’s short squeeze—liquidating $76 million in shorts—indicates not all hope is lost. Open interest declining by 3% supports the view of a relief rally rather than a full reversal.
The Relief Rally: Liquidations and Declining Open Interest
This potential bottom could reignite interest in decentralized finance (DeFi) and NFTs, which often follow Bitcoin’s lead. Altcoins like Ethereum, currently hovering around $2,080, might see correlated bounces if BTC stabilizes. However, van de Poppe cautions against expecting a quick V-shaped recovery; consolidation and lower tests are possible.
Investors should monitor key levels: $65-70K as support and $81-85K as resistance. With Bitcoin’s market cap at $1.4 trillion, this phase could define the next leg of the cycle. As always, in volatile markets, risk management is key—consider dollar-cost averaging amid uncertainty.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
