Bitcoin staged a brisk recovery off its recent lows but the rebound is unfolding against a backdrop of thin liquidity and falling trade activity, raising questions about how durable the uptick is. Price action and technicals Bitcoin (BTC) bounced from a $63,000 dip to touch $69,988 before easing back. At the time of writing it traded around $68,409, up about 5.12% on the day. Short-term momentum has flipped bullish: BTC climbed above its 9- and 21-day moving averages and the Stochastic RSI produced a bullish crossover, rising to roughly 75 — signals that typically favor a continuation of the near-term uptrend (TradingView). Liquidity and spot volume slump Despite the price bounce, market structure remains fragile. Analyst Darkfrost highlighted that spot trading volume has fallen to 2024 lows amid weak liquidity, warning that February 2026 is on track to be the month with the lowest BTC trading volume since 2024 (CryptoQuant). Retail and institutional participants have noticeably pulled back, shrinking market depth and reducing the pool of active buyers and sellers. Exchange and ETF flows Spot volume has dropped across major venues: Binance’s volume slid from about $198 billion to $75 billion, Gate.io from $53 billion to $25 billion, and Bybit from $41 billion to $20 billion — each losing more than half of prior activity. Institutional interest has cooled as well: ETF trade volume fell from $14.07 billion to $4.4 billion, while total ETF net inflows decreased from $61 billion to $54 billion, a roughly $7 billion decline (Checkonchain). These moves suggest many investors are preserving capital and waiting for clearer entry points. Futures activity mirrors the weakness In a departure from past episodes where falling spot volume pushed traders into futures, both spot and derivatives volumes have weakened together. Aggregate futures volume dropped from about $123 billion to $65 billion — a $58 billion contraction that points to broadly reduced risk appetite (Checkonchain). What this means for BTC near-term Technically, the short-term indicators favor bulls. If recent demand holds, BTC could retake $70,000 and aim for the next resistance near $73,700. Conversely, if momentum fades, key supports sit around $66,000, with $65,157 identified as a critical level to watch. Bottom line Price strength has returned briefly, but it’s happening in an environment of diminished liquidity and lower participation from both retail and institutional players. That combination makes outsized moves more likely on lower volume and increases the potential for sharp reversals if market sentiment shifts. Sources: CryptoQuant, Checkonchain, TradingView Disclaimer: This article is informational and not investment advice. Cryptocurrency trading carries significant risk — do your own research before making any investment decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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