Bitcoin (BTC) has experienced a steep decline, plummeting below $73,000 for the second time since the previous week following the Wall Street opening. As we look at the market developments:
Key Insights:
- Bitcoin continues to drop, hitting levels not seen since late 2024.
- Macro assets are weakening, and precious metals are retracting gains.
- Traders anticipate that Bitcoin could see further declines before stabilizing at long-term lows.
Bitcoin Struggles with Resistance
Data from TradingView indicates that during the US trading session, Bitcoin faced significant price weakness, dipping to below $72,500 on Bitstamp, surpassing the previous day’s 15-month lows. The positive bounce above $76,000 was short-lived, as macroeconomic forces weighed down on the market, failing to maintain momentum.
BREAKING: Silver prices display a drastic fall, decreasing nearly $9/oz in under three hours, while gold also sees a decline of $220/oz. — The Kobeissi Letter, tweet from February 4, 2026
According to trading firm QCP Capital, the current conditions pose considerable volatility in the crypto sector. They suggest that while the risk of a US government shutdown has lessened temporarily, they warn of potential future dangers stemming from unresolved fiscal conflicts.
Current Market Sentiment
Traders remain vigilant as uncertainty looms over the market. Recent reports indicate a popular target around $50,000. Some traders, like Roman, suggest concerning patterns in volume during price declines, indicating a possible bearish market.
“Notice how volume spikes whenever the price declines. This signifies that the market is reacting bearishly!”
Anticipating further dips, trader CJ mentions that the price could drop an additional $10,000 or more after possible minor recoveries.
Further insights are reported by Cointelegraph about the support level, noting that the 200-week exponential moving average is nearing $68,000. Data from CoinGlass highlights that liquidation positions are building above $72,000, with over $800 million in liquidations within a 24-hour period.
