Bitcoin Rebound Halted at $71,000 Amid Risk-Off and Thin Liquidity — BTC

Bitcoin (BTC) is stalled near $71,000 as momentum from its late-January rebound falters. After briefly retreating to the $60,000s in a capitulation, it rallied to the $70,000s over the weekend but is now meeting strong sell pressure from investors seeking to exit at higher prices. The Crypto Fear & Greed Index dipped to 6 on Friday, the lowest since 2022, before recovering to 14 by late Monday, reflecting cautious buying. Thin liquidity and thinning order books mean modest sell pressure can trigger stop-outs and liquidations, creating a feedback loop that disrupts price stability. Aggregate trading volume on major exchanges has fallen roughly 30% since October–November 2025, with monthly spot trading volume dropping from about $1 trillion to $700 billion. Bitcoin peaked around $126,000 in late 2025/early 2026 and has since retraced over 50%. The critical test is whether buyers can hold the $60,000 area; a failure could bring renewed volatility in a risk-off environment.