BlockBeats News, February 24th, Bitfinex Alpha released a report stating that Bitcoin is still stuck in a range-bound consolidation, with the February 5th pullback being the deepest of this cycle so far. Volatility has decreased, momentum has weakened, indicating the market is transitioning from a liquidation-driven decline to a more balanced environment. On-chain data suggests that most of the recent sell-off has been absorbed by the demand zone between $60,000–$69,000. These holders are currently close to breakeven and have largely avoided accelerated selling, helping stabilize the price and prompting the market to consolidate.
The Bitcoin ETF saw a net outflow of about $166 million last week, and Ethereum products continue to experience redemptions, indicating that institutional accumulation has not yet resumed. Although weekend inflows provided initial stability signals, the overall liquidity environment remains depressed. The risk-reward ratio continues to shrink, trending towards historical defensive levels, indicating limited capital inflows into the network. Meanwhile, derivative positions have returned to normal, funding rates are neutral to slightly negative, reducing liquidation risks but also restricting the upside potential for price acceleration.
For a sustainable breakout, the market needs a noticeable resurgence in spot demand and stronger institutional participation; until then, Bitcoin may continue to oscillate within the existing absorption range.
