Bitcoin fell by about 8% on February 3, briefly dropping below the $73,000 level.
The rapid rebound pushed the price up to $74,500 at the time of writing, reducing the intraday correction to 5.8%. This drop is the lowest price of Donald Trump’s administration and the lowest level since the November 2024 presidential election.
This decline sent Bitcoin down to its all-time high of $73,500 in March 2024, a level it held during the early stages of the decline but eventually collapsed due to sustained selling pressure.
The move revived a cluster of support zones that traders have been monitoring as important technical thresholds for nearly a year.
Macro risk-off prompts virtual currency decline
The crypto weakness is linked to broader risk-off sentiment across markets triggered by President Trump’s nomination of Kevin Warsh as Federal Reserve Chairman.
Warsh’s selection raised concerns about a more hawkish policy mix and tighter financial conditions, pressures that have historically weighed heavily on high-beta assets, including cryptocurrencies. The strong dollar that typically accompanies these expectations further exacerbates the headwinds for digital assets. However, the current weak dollar makes this decline even more painful.
Disappointment with Microsoft’s Azure growth increased selling pressure, worsening broader risk sentiment and causing spillovers across assets.
The AI trade volatility showed how vulnerable cryptocurrencies are to spillovers from the growth-sensitive technology sector, especially when positioning is tight and liquidity is thin.
Unwinding leverage will amplify the decline
According to data from CoinGlass, Bitcoin liquidations have exceeded $2.5 billion in recent days, setting off a chain reaction of forced Bitcoin sales that began as a macro-driven selloff.
A Bitfinex note said thin liquidity over the weekend worsened a decline that started on Saturday at $84,000.
The combination of macro triggers and leverage unwinding has created a situation where stop losses and margin calls can further exacerbate the decline, potentially forcing even relatively modest initial selling pressure into much larger moves.
Moreover, the flow of funds to institutional investors in 2026 will be uneven.
Inflows into exchange-traded funds (ETFs) are often accompanied by outflows during periods of volatility, suggesting tactical rebalancing rather than aggressive buy-in, leaving prices exposed as liquidation pressure accelerates.
The lack of consistent institutional demand meant there was no meaningful buffer when forced sales began.
Galaxy Digital’s research also notes that near-term catalysts appear to be scarce, with the likelihood of market structure legislation decreasing and acting as a headwind to the narrative.
With no clear positive factors at hand, traders lack the confidence to step aggressively during a drawdown.
Critical support and resistance levels
Bitcoin is currently trading within a closely monitored technical range.
The $73,500 level from 2024 and the February 3 intraday low $72,945 form the immediate support zone.
IG Markets has identified a broader support band between $73,581 and $76,703, an area associated with past cycle highs and 2025 lows that has been tested numerous times over the past year.
crypto slate Akiba’s bear market analysis also identified several support and resistance levels in 2026.
A daily close below this band will likely result in follow-through selling towards the next support cluster between $72,757 and $71,725. If this zone cannot be maintained, the July 2024 peak of approximately $70,041 will be the next major downside passage point.
On the resistance side, Bitcoin regained its 2024 all-time high of $73,500, indicating that buyers are prepared to defend recent breakdown levels. The April 2025 bottom zone near $74,508 previously acted as support and is now acting as resistance.
Above that, minor resistance lies at $78,300, with the November 2025 low of $80,620 and the psychological level of $80,000 forming the next important barrier.
Distinguishing between recovery and recovery
A one-day bounce is not a durable bottom.
Historical patterns suggest that sustainable recovery typically requires at least two conditions. One is repeated daily closes above the $74,500 level, the April 2025 reference zone turns from resistance to support, and evidence that liquidation pressure has eased following the $2.56 billion forced selling wave.
Without these confirmations, the rally risks bouncing back against the overhead resistance as sellers use force to exit their positions.
ETF flows should stabilize beyond isolated green days, consistent with institutional actions that are tactical rather than proactive.
Two short-term scenarios
If Bitcoin holds the $73,000-$73,445 support zone and reclaims $74,500, the path of least resistance will be tough towards $78,300, followed by the $80,000-$80,620 range.
This scenario requires both technical follow-through and the absence of new macroeconomic headwinds.
Alternatively, if the daily close falls below the $73,581 lower band, the $70,000 level becomes the next major psychological and technical midpoint, increasing the likelihood of a sustained selloff into the $72,757 to $71,725 zone.
This scenario becomes more likely if liquidation pressures remain high or if the macro environment worsens further.
After holding the 2024 all-time high as support for about a year, a fall below that level would mean a technical failure, and the burden of proof would shift to the buyers.
The combination of macro risk-off sentiment, unwinding of leverage, and tactical institutional flows created a situation where support levels held for months could collapse within hours.
(Tag translation) Bitcoin
