Updated: February 3, 2026 | Tapbit Market Desk
Bitcoin plunged to around $73,111 this week, marking its lowest level in roughly 15 months and extending a slide of more than 15 percent over seven days before rebounding to the $76,000 area. The steep decline came alongside a wave of forced selling in the derivatives market, as total crypto liquidations climbed to about $659 million in 24 hours, with Bitcoin long positions accounting for roughly $234 million. The move underscored how quickly leverage can unwind in the digital asset space and left traders on edge as they reassessed risk, liquidity, and the path of Bitcoin’s next major trend.
Bitcoin Drops to 15-Month Low
The cryptocurrency briefly touched $73,111 during Asian trading hours, representing a ~38–40% correction from the cycle peak near $125,000–$126,000 set in October 2025. That level also marks the lowest print since late 2024, erasing roughly $250–$300 billion in market capitalization from the recent high-water mark.
Despite the severity of the move, buyers stepped in aggressively around $73,000–$75,000, pushing price back above $76,000 within hours. The quick rebound prevented a deeper breakdown but left sentiment fragile — many participants remain cautious after repeated failed attempts to reclaim $85,000 resistance over the past month.
Over $659 Million in Crypto Liquidations
Leveraged positions were decimated during the leg lower. Coinglass and exchange data show total crypto futures liquidations reached approximately $659 million over 24 hours, with Bitcoin accounting for ~$234 million (mostly long-side). Ethereum and major altcoins contributed the remainder, reflecting broad risk-off flows across the ecosystem.
These forced exits amplified the downside move: as longs were liquidated, selling pressure increased, triggering more stop orders and margin calls in a classic cascade. Open interest on major perpetual contracts dropped sharply before stabilizing, indicating a meaningful deleveraging event — often a necessary precursor to local bottoms in crypto.
What Is Driving the Latest Bitcoin Sell-Off?
The decline has been fueled by a combination of macro, technical and sentiment factors:
- Macro liquidity squeeze: The Federal Reserve’s continued “higher-for-longer” messaging (no rush to cut rates from 3.50–3.75%) has kept real yields elevated, pressuring risk assets including crypto.
- Persistent spot ETF outflows: Cumulative redemptions from U.S. Bitcoin ETFs have exceeded several billion dollars since mid-January, steadily removing spot bid support.
- Geopolitical & tariff uncertainty: Renewed Trump administration rhetoric around broad tariffs (autos, semiconductors, copper) has raised fears of global supply-chain inflation and slower growth.
- Technical breakdown: Bitcoin lost the $84,000–$85,000 cluster (prior support) → triggered algorithmic selling and stop cascades.
- Profit-taking & crowded longs: After the strong rally into late 2025, many participants were positioned aggressively; the pullback provided an exit for those locking in gains.
Liquidity conditions exacerbated the move: weekend/early-week Asia sessions are notoriously thin, turning modest selling pressure into outsized price swings.
Market Sentiment and Outlook
Sentiment has turned deeply cautious. The Crypto Fear & Greed Index sits in extreme fear territory (~18–24), while social volume for bearish keywords (“Bitcoin crash,” “crypto winter”) has spiked sharply. Bitcoin dominance has risen to 59–60%, indicating a flight-to-safety within crypto as altcoins bleed more aggressively.
Despite the pain, several contrarian signals are emerging:
- RSI (daily) deeply oversold (~35–42) — historically a strong bounce precursor
- Funding rates remain positive/neutral — longs still paying shorts, no widespread short squeeze
- Exchange balances continue declining — long-term holders accumulating on weakness
- Spot ETF outflows appear to be slowing — potential stabilization
While short-term pressure remains elevated, the current setup closely resembles previous cycle capitulation phases (March 2020 COVID crash, June 2022 bear low, November 2022 FTX bottom) that ultimately preceded multi-fold recoveries.
What Traders and Investors Should Watch Next
Key levels and catalysts to monitor in the coming days/weeks:
- Support zone: $75,000–$76,000 must hold for a credible local bottom
- Resistance cluster: $80,000–$82,000 — reclaim needed for meaningful relief rally
- Next downside target: $72,000–$74,000 (200-week MA area) if $75k breaks
- Macro events: February jobs report (Feb 7), Fed speakers, CPI release (Feb 10–14)
- On-chain metrics: funding rates, open interest, liquidation clusters, whale accumulation signals
- ETF flows: any reversal in spot Bitcoin ETF outflows would be strongly bullish
Risk management remains paramount: cap position size at 1–2% of portfolio per trade, use isolated margin, set hard stops, and avoid revenge trading after losses. Diversification across spot, staking yield, and stablecoin positions can help weather volatility.
FAQs – Bitcoin Price February 3, 2026
Why did Bitcoin drop to a 15-month low near $73,000?
Macro liquidity concerns (Fed pause), persistent ETF outflows, tariff/geopolitical uncertainty, and a leverage flush ($659M+ liquidations) combined to drive the move lower.
What caused the quick rebound above $76,000?
$75k–$76k aligned with high-volume capitulation clusters from November 2025. Oversold RSI, positive funding rates, and dip-buying from longer-term holders defended the level.
Is this the bottom for Bitcoin in 2026?
Possible local floor if $75k–$76k holds and ETF flows stabilize. Break below opens risk toward $72k–$74k. Sustained hold + volume confirmation would signal relief rally potential.
Should I buy Bitcoin after the dip?
$77k–$78.5k offers favorable risk/reward for staged DCA entries. Wait for $80k–$82k reclaim + higher volume before aggressive longs. Below $75k risks deeper test toward $70k–$74k.
Conclusion & Near-Term Outlook
Bitcoin’s plunge to a 15-month low near $73,111 — followed by a modest rebound above $76,000 — reflects classic risk-off deleveraging amplified by macro caution, ETF outflows, and leverage flush. While short-term sentiment remains fragile, the current setup (oversold technicals, extreme fear readings, positive funding rates, declining exchange balances) closely resembles previous capitulation phases that ultimately preceded powerful multi-month recoveries.
Tapbit offers traders optimal execution during volatile periods: 0% maker fees on BTC/USDT spot & perpetuals, deep liquidity, up to 125x leverage (use conservatively), staking/yield options, and instant fiat ramps. Monitor $75k–$76k support hold, $80k–$82k resistance reclaim, February jobs data (Feb 7), Fed speakers, and ETF flow direction — capitulation extremes have historically offered the best asymmetric entries of the cycle.
Track Bitcoin live & trade volatility on Tapbit:
Disclaimer: Cryptocurrency trading involves significant risk of loss. Prices are highly volatile and can change rapidly. Technical levels, ETF flows and macro events do not guarantee future price action. This article is for informational purposes only and does not constitute investment advice. Always conduct your own research (DYOR) and never invest more than you can afford to lose completely.
