Bitcoin slid sharply on Feb. 5, 2026, briefly dipping below $69,000 before stabilizing near the $70,000 area.
Earlier selling accelerated through intraday support levels; as a result, price printed a fast downside move.
However, short-term bids appeared near the lows, and price rebounded slightly after the drop.
Market participants and analysts linked part of the selling pressure to escalating tensions between the U.S. and Iran. News of renewed diplomatic deadlock and military signaling in the Gulf raised risk concerns, and traders reduced exposure in high-beta assets, including Bitcoin. As a consequence, safe-haven flows and geopolitical uncertainty weighed on crypto sentiment throughout the session.
At the same time, broader market indicators such as crude oil prices also reacted to the geopolitical backdrop. Oil initially rose on fear-driven demand expectations, but later eased as risk appetite faltered, reinforcing downside pressure on risk assets. This interplay between energy markets and crypto sentiment helped shape today’s volatile moves.
Bitcoin liquidations surge as BTC slips under $70,000
More than $100 million in crypto positions were liquidated within the last hour as Bitcoin fell below the $70,000 level, according to liquidation data shown on a market heatmap. Bitcoin accounted for the largest share of forced closures, while Ethereum also posted heavy liquidations during the same window.
Crypto Liquidation Heatmap. Source: CoinGlass
Meanwhile, Bitcoin moved into a “high liquidation zone” as price hovered near the upper end of a range that includes dense liquidity clusters, according to market analyst TedPillows. In a post on X, he said the $65,000 to $70,000 area holds “huge liquidity clusters,” which can attract sell-side pressure during fast moves.
Bitcoin Liquidation Heatmap. Source: TedPillows on X
The liquidation heatmap he shared highlighted thicker bands of potential forced-position unwinds inside that zone. As a result, a sharper drop into the range could trigger cascading liquidations, which often amplifies volatility once price starts moving.
TedPillows added that sellers may target the same liquidity pocket, since large clusters can act like magnets when leverage builds.
