Bitcoin plummets to its lowest value since Trump’s inauguration as leverage amplifies a broader market downturn.

On February 3, Bitcoin experienced a decline of approximately 8%, briefly dropping below the $73,000 mark.

A swift recovery saw prices rise to $74,500 at the time of reporting, reducing the intraday correction to 5.8%. This drop represents the lowest price during President Donald Trump’s administration and the weakest level since the November 2024 Presidential Election.

The selloff drove Bitcoin down to its March 2024 all-time high of $73,500, a level that initially held during the early phase of the decline but ultimately succumbed to persistent selling pressure.

This movement reactivated a series of support zones that traders have regarded as essential technical benchmarks for nearly a year.

Macro risk-off sentiment impacts crypto

The weakness in the cryptocurrency market is associated with a widespread risk-off sentiment across various markets, triggered by Trump’s nomination of Kevin Warsh as chair of the Federal Reserve.

Warsh’s appointment raised concerns regarding a potentially more hawkish policy approach and tighter financial conditions, factors that have historically pressured high-beta assets, including cryptocurrencies. A stronger dollar, which usually accompanies such expectations, adds to the challenges faced by digital assets. However, the current weakness of the dollar exacerbates this decline.

Disappointment in Microsoft’s Azure growth further contributed to the selling pressure, negatively affecting broader risk sentiment and causing cross-asset contagion.

The instability in the AI trade highlighted how cryptocurrencies remain susceptible to spillover effects from technology sectors sensitive to growth, especially when market positioning is stretched and liquidity is limited.

Bitcoin decreased from over $126,000 in early October 2025 to below the $75,000 threshold by early February 2026, indicating persistent downward pressure throughout the four-month period.

Leverage unwind intensifies decline

Data from CoinGlass indicates that over $2.5 billion in Bitcoin liquidations occurred in recent days, transforming what started as a macro-driven selloff into a wave of forced selling.

Thin liquidity over the weekend worsened the selloff that initiated at $84,000 on Saturday, according to a note from Bitfinex.

The interplay of macro triggers and leverage unwinding created a scenario where relatively modest initial selling pressure could lead to significantly larger moves, as stop-loss orders and margin calls exacerbated the decline.

Moreover, institutional flows in 2026 have been inconsistent.

Exchange-traded fund (ETF) inflows, which are often followed by outflows during periods of volatility, indicate tactical rebalancing rather than aggressive buying on dips, leaving prices vulnerable as liquidation pressure mounts.

US spot Bitcoin ETF flows recorded net outflows on several days in January 2026 following streaks of inflows, with the largest single-day outflow of $356.6 million noted on January 21.

The lack of consistent institutional demand resulted in no significant buffer when forced selling commenced.

Research from Galaxy Digital also pointed out that near-term catalysts seem limited, with reduced chances of legislative progress on market structure acting as a narrative headwind.

In the absence of clear positive drivers, traders lack the confidence to engage aggressively during downturns.

Key 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 of $72,945 create the immediate support zone.

IG Markets identifies a wider support band between $73,581 and $76,703, an area linked to previous cycle highs and 2025 lows that has been tested multiple times over the past year.

CryptoSlate has also highlighted several support and resistance levels for 2026 in Akiba’s bear market analysis.

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A daily close below this band would heighten the likelihood of follow-through selling toward the next support cluster between $72,757 and $71,725. If that zone fails to hold, the July 2024 peak of approximately $70,041 becomes the next significant downside target.

On the resistance front, Bitcoin’s recovery of the 2024 all-time high of $73,500 suggests that buyers are prepared to defend the recent breakdown level. The April 2025 trough zone around $74,508 now serves as resistance after previously acting as support.

Above this, minor resistance is positioned at $78,300, with the November 2025 low of $80,620 and the psychological $80,000 level forming the next substantial barrier.

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Distinguishing bounce from recovery

A single-day rebound does not signify a sustainable bottom.

Historical trends indicate that lasting recoveries generally require at least two conditions: consistent daily closes above the $74,500 level, converting the April 2025 reference zone from resistance to support, and evidence that liquidation pressure has diminished following the $2.56 billion wave of forced selling.

In the absence of these confirmations, rallies risk becoming dead-cat bounces against overhead resistance as sellers utilize strength to exit positions.

ETF flows must stabilize beyond isolated positive days, aligning with tactical rather than aggressive institutional behavior.

Two near-term scenarios

If Bitcoin maintains the $73,000 to $73,445 support zone and reclaims $74,500, the path of least resistance shifts toward $78,300, followed by the $80,000 to $80,620 range.

This scenario necessitates both technical follow-through and the absence of new macroeconomic challenges.

Conversely, a daily close below the $73,581 lower band raises the likelihood of continued selling into the $72,757 to $71,725 zone, with the $70,000 level serving as the next major psychological and technical waypoint.

This scenario becomes more probable if liquidation pressure remains high or if macro conditions worsen further.

Bitcoin’s drop below its 2024 all-time high after nearly a year of maintaining that level as support represents a technical breakdown, shifting the onus to buyers.

The combination of macro risk-off sentiment, leverage unwinding, and tactical institutional flows has created circumstances in which support levels that had been stable for months gave way within hours.

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