U.S. consumer data drives a strong rally in Bitcoin, gold, and stocks

The global market has rebounded strongly after the previous deep sell-off, pushing stocks, cryptocurrencies, and commodities into severely oversold territory. Bitcoin has recovered to around $71,000, while the US stock market, gold, and silver also saw significant gains, thanks to technical buying and easing concerns over short-term macroeconomic factors.

Notably, this recovery was not driven by changes in fundamental factors but mainly resulted from a period of strong deleveraging.

Technical Milestones Triggering the Recovery Momentum

The broad-based rebound began when key technical levels held across multiple asset classes. The S&P 500 index reached the 100-day moving average — an important support level closely monitored by systematic traders and investors.

This triggered mechanical buying from investment funds aiming to rebalance risk portfolios after several consecutive sell-off sessions.

S&P 500 Chart | Source: Google FinanceBitcoin also followed a similar trend. After briefly dropping to $60,000, this digital currency rebounded strongly as forced liquidations gradually decreased and funding rates stabilized.

The lack of new liquidation pressure created an environment for spot traders to participate, supporting the short-term recovery.

Re-establishing Positions to Reduce Selling Pressure

The previous sell-off wiped out most leverage in the financial markets.

Especially in the cryptocurrency sector, derivatives positions had become heavily skewed toward longs, causing prices to fall further when support levels were broken. However, by February 6, most of this excess leverage had been eliminated.

As a result, marginal selling pressure decreased significantly. With fewer margin calls and forced liquidations, prices were able to recover without any new bullish catalysts.

Estimated Bitcoin leverage across all exchanges | Source: CryptoQuantMarket charts show leverage steadily increasing throughout January before sharply declining when prices broke support levels in early February. After this correction phase, forced selling pressure eased, allowing prices to rebound even without clear growth drivers.

Macro Signals Easing Short-Term Tensions

Signals from the US macroeconomy also contributed to market stability. The consumer confidence report released on February 6 exceeded expectations, reaching the highest level in six months.

While not indicating strong growth, this data helped alleviate immediate concerns about a sudden recession risk.

The bond market responded positively, pricing in a higher likelihood that the Federal Reserve may cut interest rates in the near term. This caused short-term bond yields to decline before stabilizing, easing financial conditions and supporting risk assets.

Gold and silver also rebounded strongly, confirming that the previous session’s decline was mainly due to liquidity pressures rather than a rejection of their safe-haven roles. The weakening US dollar and the activity of buying cheap assets also contributed to the rally of precious metals.

Gold price chart over the past week | Source: TradingView## Technical rebound, not a trend reversal

The rebound on February 6 reflected a technical rally driven by oversold conditions, position rebalancing, and short-term macroeconomic easing. However, there is not enough evidence to confirm this as a sustainable trend reversal.

The financial markets remain heavily influenced by liquidity conditions, interest rate expectations, and global capital flows. Volatility is likely to continue as investors reassess risks amid an increasingly tightening financial environment.

Mr. Teacher