Bitcoin has decisively reclaimed the critical $70,000 level, reaching an intraday high of $71,850 on Monday. This move shatters the bear market narrative and signals a fundamental shift in market structure, with previous resistance now acting as a support floor. The rally follows a volatile week where BTC plummeted to a 16-month low of approximately $60,033 amid macroeconomic and geopolitical concerns.
The primary catalyst for the rebound is renewed institutional appetite, evidenced by spot Bitcoin ETFs recording $371 million in net inflows on February 6, breaking a three-day outflow streak that saw $1.25 billion exit the funds. Sustained buying pressure from products like BlackRock's IBIT and Fidelity's FBTC is creating a supply shock. Analysts from Standard Chartered and Bernstein have revised forecasts upward, eyeing $150,000 to $200,000 as the new cyclical top, with a near-term target of $100,000.
Technical analysis shows Bitcoin forming a higher-high structure on the weekly timeframe. The MACD indicator shows early signs of a bullish crossover, though the Aroon Down indicator at 75.8% suggests the downtrend is not fully dissipated. The main invalidation level for the bullish thesis is a weekly close below $68,000, which could trigger a retest of $60,000.
Additional market dynamics include nearly $180 million in short liquidations in the past 24 hours, nearly six times long liquidations, creating upward buy pressure. The supermajority victory of Prime Minister Sanae Takaichi in Japan, with her mandate for an aggressive $135 billion fiscal stimulus package, also fueled risk assets like Bitcoin.
As Bitcoin dominance creates a liquidity vacuum, capital is historically rotating into high-beta infrastructure plays. This rotation favors projects like Bitcoin Hyper ($HYPER), which uses the Solana Virtual Machine (SVM) as a Bitcoin Layer 2 to bring high-speed smart contracts to Bitcoin. The project has attracted over $31.3 million in early capital during its presale, with tokens priced at $0.0136753, positioning itself to capture spillover demand from Bitcoin's stabilization.
