Bitcoin edged higher on Feb. 3, trading at $78,659 at press time, up 3.8% from the previous day. The rebound followed a severe sell-off that pushed prices to around $75,400 — the lowest level since April 2025. Despite the bounce, Bitcoin remains down approximately 11% over the past week and nearly 40% from its October 2025 peak of $126,080.
Futures and ETF Data Show Stabilization
Futures market data suggests conditions are starting to stabilize. According to CoinGlass, total trading volume slipped 18.7% to $78.9 billion, while open interest climbed slightly to $52.19 billion, indicating cautious repositioning rather than leveraged speculation. A more constructive signal came from the U.S. spot Bitcoin ETF market. SoSoValue data shows spot Bitcoin ETFs recorded net inflows of $561.89 million on Feb. 3, snapping a five-day outflow streak. BlackRock’s IBIT led with $141.99 million, followed by Fidelity’s FBTC at $153.35 million and Bitwise’s BITB with $96.5 million. All other issuers also posted net inflows.
ETF inflows matter because they reflect direct Bitcoin buying rather than short-term speculation. When these products see steady demand, they help absorb supply during market stress. While one session does not confirm a trend, the timing suggests institutions are starting to view current prices as attractive.
Negative Funding Rate for Three Days Favors Short-Term Buyers
CryptoQuant contributor CryptoNiel noted that Bitcoin funding rates have stayed negative for three consecutive days — a pattern often seen when short positions dominate futures markets. “From a bullish perspective, this can represent an attractive entry. From a bearish one, it may also signal the start of a prolonged consolidation phase,” he said. He added that Bitcoin has failed to push back toward the CME gap near $84,000, suggesting upside momentum is still limited.
Technical Analysis: RSI Oversold, Bollinger Bands Tightening
On the technical side, Bitcoin’s relative strength index (RSI) has fallen below 30, firmly in oversold territory. Similar readings have often preceded brief recoveries in previous cycles, even when the overall trend remained negative. Price is trading along the lower Bollinger Band; if selling slows, a return to the mid-band is possible, but a reversal is not guaranteed. Bitcoin remains below both the 20-day and 50-day moving averages, meaning any recovery attempt is likely to face resistance near the $82,000–$85,000 zone — an area that previously acted as support before breaking down.
Structurally, the chart continues to show lower highs and lower lows. Bitcoin is currently holding just above the $76,000–$78,000 demand area, where buyers have stepped in before. A clear break below that range could lead to further losses. However, downward momentum is starting to level off, increasing the likelihood of a bullish RSI divergence should selling pressure continue to wane. Additionally, Bollinger Bands are beginning to narrow after rapidly expanding, suggesting the market may shift from aggressive selling to a period of consolidation.