Bitcoin has entered its deepest correction of the current cycle, trading between $66,000 and $70,000 since February 5, according to Bitfinex Alpha's latest report. The cryptocurrency's narrowing volatility and weakening momentum suggest a shift from a liquidation-driven downtrend to a balanced consolidation phase. On-chain data indicates that demand zones between $60,000 and $69,000 have absorbed most of the recent decline, stabilizing prices as holders near break-even levels refrain from selling. Institutional capital flows remain cautious, with Bitcoin ETFs experiencing a net outflow of $166 million over the past week. Ethereum-related products also continue to see redemptions, reflecting a lack of sustained accumulation. Despite weekend inflows hinting at stabilization, overall liquidity is low. The realized profit/loss ratio has contracted to defensive levels, indicating limited capital expansion. Derivatives markets show neutral to slightly negative funding rates, reducing liquidation risk but also capping potential upside.