Bitcoin Price Today: BTC Slides Below $70,000 as Liquidations Spike – What Traders Watch Next

BTC dropped below $70,000 on Feb 5, 2026. Bitcoin price today trades near $69,500 USD, after printing a session low around $69,101 on Bitstamp. The Bitcoin price USD level broke fast during Asian trading hours, erasing recent gains.

The move caused market-wide stress. According to data tracked across major exchanges $853 million in crypto liquidations hit within 24 hours. A strong risk-off tone spread across derivatives markets.

Liquidations explain the speed of the drop. TheStreet reported $853M in forced liquidations across crypto. Long positions took the largest hit. Many traders were positioned for upside continuation. The sudden breakdown caught them off guard. Margin levels were breached within minutes. That triggered automatic closures across exchanges.

Leverage in crypto perpetual futures (“perps”) means you put down only a fraction of the position value as margin (collateral), but you gain exposure to the full notional size of the contract. For example, with 10x leverage, 100 USD of margin lets you control a 1,000 USD BTC perp position, so both profits and losses move as if you held 1,000 USD of BTC, and a relatively small move against you can liquidate your margin entirely.

When price breaks a key level, leveraged longs get closed automatically. Exchanges force-sell positions to cover margin. This adds selling pressure and speeds the fall. Each wave of selling pushes price lower. That lower price then triggers the next set of liquidations. The process becomes self-reinforcing during fast markets. Order books cannot absorb the flow smoothly.

This dynamic is common in crypto derivatives like perpetual futures. High leverage increases risk during volatility spikes. Small price moves become large account swings. Traders using high leverage have less room for error. Once volatility expands, liquidation risk rises sharply. That is why cascade events often appear sudden but follow mechanical rules. Liquidation snapshot:

• Total liquidations: $853M

• Most affected: BTC and ETH longs

• Fastest cascade: Within hours of the $70K break

Strong risk management and strict risk rules matter most during liquidation cascades.

Bitcoin price today is at a decision zone. Traders watch if BTC reclaims $70,000USD fast. A strong reclaim can show seller exhaustion. A weak bounce can turn $70,000USD into resistance.

Liquidations remain the key signal. If forced selling slows, volatility may cool. If liquidations stay high, instability can continue. Markets stabilize only when cascades fade.

Execution conditions matter now. Spreads are wider than normal. Thin books increase trade friction. This makes entries and exits harder.

Traders are monitoring:

● Whether liquidation volume declines

● If intraday volatility contracts

● How spreads and execution costs behave

This market requires strict risk management. Traders should avoid oversizing after breakdowns. Smaller positions reduce damage during fast swings. Protecting capital matters more than catching every bounce. Patience and rule-based execution give traders the edge in high-volatility phases.