Bitcoin has broken below several crucial technical support levels, signaling a shift in market dominance from buyers to sellers and raising concerns about a deeper downturn. The cryptocurrency fell below the $72,000 mark on February 4, 2026, reaching its weakest price point since late 2024 and confirming a breakdown from its January consolidation range.
Technical indicators show a clear bearish shift. According to CryptoQuant analyst _OnChain, Bitcoin's price has closed below the Average Volume-Weighted Average Price (AVWAP) anchored to the Fourth Halving, the 50-day Simple Moving Average (SMA50), and the AVWAP anchored to the latest all-time high. This triple breakdown is a strong signal that sellers are now in control. The 97K–100K range has solidified as a major resistance area, forming the first lower high in the current trend.
On-chain metrics echo patterns from past downturns. Analyst COINDREAM highlighted that Bitcoin's UTXOs in Loss metric has re-entered the 27–30% zone, a level last seen during the May 2022 stress pattern. This indicates a large share of market participants has moved from profit into unrealized loss. This zone acts as a decision point; if the metric holds above 30%, it could lead to further downside, but a stall within the 27–30% range could signal exhausted selling pressure and pave the way for recovery.
Spot market weakness and derivatives liquidations accelerated the decline. The Coinbase Bitcoin Premium Index, a gauge of U.S. institutional demand, has remained firmly negative, suggesting subdued buying interest from U.S.-based investors. This weakness was compounded in the derivatives market, where over $235 million in Bitcoin positions were liquidated in 24 hours. Long positions accounted for approximately $198 million of that total, with major clusters on exchanges like Binance, Bybit, and Hyperliquid as BTC breached the $75,000 and $73,000 levels.
The market context remains fragile, with altcoins also posting sharp losses amid broader risk-off sentiment. Traders are now watching the $70,000 psychological level as the next critical support. A break below could expose Bitcoin to deeper losses, while any recovery would need to reclaim the $75,000–$78,000 range to signal stabilization.
