Bitcoin Faces Potential Drop Below $64K as Selling Pressure Mounts
By John Nada·Feb 5, 2026·2 min read
Bitcoin's price has dropped over 22.5% this week, with experts warning of further declines due to institutional selling pressure.
Bitcoin (BTC) price has plunged over 22.5% in just a week, settling at $69,000 on Thursday and erasing 15 months of gains. Veteran trader Peter Brandt warns that the downtrend may continue, attributing the pressure to 'campaign selling' by large institutions. Miners and exchange-traded funds (ETFs) are also reducing their BTC exposure, signaling a challenging market environment.
Brandt identifies a potential bottom zone near $54,600–$55,000, suggesting that BTC could drop another 10%. The current market structure displays a series of daily lower highs and lower lows, indicating a lack of buying interest among traders. This pattern reflects what Brandt describes as the 'fingerprints of campaign selling', which indicates a deliberate distribution by large players rather than retail liquidation.
Onchain data corroborates Brandt's outlook, showing miners have been in net distribution since January, sending more BTC to the market. Additionally, US spot Bitcoin ETFs have reduced their holdings, with net balances decreasing from 1.29 million BTC to 1.27 million. The Coinbase premium, often a measure of institutional interest, is also at yearly lows, suggesting waning confidence.
This distribution raises the possibility of Bitcoin hitting its bear flag target around $63,800, reflecting a potential drop of 10% from current levels. Onchain analyst GugaOnChain warns that Bitcoin risks further declines toward $54,600 due to ongoing institutional selling. This downside target aligns with a historically significant zone, indicating periods when Bitcoin is structurally undervalued.
GugaOnChain notes that the price nearing this accumulation phase suggests a critical transition between capitulation and accumulation. Historical patterns indicate that once Bitcoin falls below significant thresholds, recovery phases can follow. A potential accumulation window may also emerge after July 2026, as historical trends between credit spreads and Bitcoin market bottoms suggest.
Investors need to tread carefully in this volatile environment. The lack of buying interest amid institutional selling presents a challenging landscape for Bitcoin's price recovery. This situation underscores the importance of thorough research and caution in trading decisions, as the market dynamics continue to evolve.
Cointelegraph emphasizes that this article does not provide investment advice. Every trading decision involves risk, and accuracy in information is not guaranteed. This landscape is indeed complex, and staying informed is crucial for navigating the ongoing shifts in the market.