Bitcoin Reclaims $71,000 as RSI Hits Oversold Levels Amid Institutional Buying

Bitcoin rose above $71,000 on February 6, 2026, after dropping to a nine-month low earlier in the week. The move comes as the RSI indicator reached oversold territory for the first time since the previous cycle reset. Analysts are closely watching whether this price correction will serve as a base for a new uptrend or if further declines could test critical support levels according to market analysis.

Binance’s SAFU Fund added another $233 million in BTC through recent purchases, raising the total to $434.5 million in accumulated Bitcoin as reported by CoinPaper. These moves were identified via blockchain analytics from Lookonchain and Arkham Intelligence. Institutional buying is being interpreted as a signal that long-term investors remain confident in Bitcoin's future according to industry analysis.

The RSI indicator currently stands at 27, a level often associated with oversold conditions in traditional markets. Some analysts suggest this may indicate a potential turning point. Traders on X have pointed to the RSI's decline as a sign that Bitcoin could be forming a monthly low. If this pattern holds, it may signal the beginning of a new bull cycle.

What Drives Bitcoin's Recent Movements?

Vanguard has indirectly increased its Bitcoin exposure by holding a stake in Strive, a U.S. public company that owns over 13,130 BTC according to market reports. While Vanguard has historically been skeptical of cryptocurrencies, its investment in Strive has created a multi-million-dollar indirect exposure to Bitcoin. This is part of a broader trend where institutional players are quietly increasing their holdings through indirect exposure rather than direct purchases as observed in recent analysis.

Bitcoin's price has faced downward pressure as it dropped below the $77,600 level and the 200-week EMA of $68,300 according to technical analysis. Technical analysis suggests that the price has broken out of a rising channel that supported the 2024 uptrend. This has raised concerns about whether the current bearish momentum will continue.

What Do Analysts Say About the Outlook?

Market sentiment remains cautiously constructive, but Wall Street is divided on what will happen in 2026 according to market analysis. Some analysts, such as Geoff Kendrick from Standard Chartered, believe Bitcoin could reach $175,000 to $250,000 if broader economic momentum picks up. However, factors like the nomination of Kevin Walsh, who supports a smaller Federal Reserve balance sheet, and the partial U.S. government shutdown, have created a more cautious environment.

The relative strength index is a key tool for many traders monitoring Bitcoin's short-term prospects. A reading below 30 is considered oversold, and many traders look for a bounce after hitting that threshold as technical indicators suggest. If Bitcoin can close the week above $68,500, it could reverse the recent bearish trend and set the stage for a move back toward the $77,000 resistance level.

A drop below $60,000, however, could see further declines toward a potential accumulation base at $55,000. This scenario would align with traditional market behavior for assets in correction phases.

Institutional buying by entities like Binance's SAFU Fund and Vanguard's indirect exposure through Strive suggest that major market players remain committed to Bitcoin despite short-term volatility according to market reports. These developments indicate that the broader market structure is still in place, with long-term bullish expectations intact as industry analysis suggests.

As investors assess the next steps, the focus remains on key price levels, RSI behavior, and institutional activity. Whether Bitcoin will consolidate at these levels or continue to decline depends largely on the broader macroeconomic environment and continued buying pressure from major participants.