Bitcoin extended its downward move Tuesday February 3which has since fallen to its lowest level November 2024. The heavy selling overwhelmed bidding in the spot and derivatives markets.
The decline marks a sharp escalation of downward momentum after weeks of fragile consolidation.
According to data from TradingView, Bitcoin fell to approx $73,000with a loss in one day of more than 7%. The move broke decisively under the mid $80,000 support zone that had supported price action through January, opening the door for deeper downside testing.
Key support gives way as Bitcoin momentum turns sharply bearish
The latest sell-off follows multiple failed recovery attempts over the past month. Each rebound stalled at lower and lower levels, signaling weakening demand and growing seller dominance.
Once Bitcoin becomes the $80,000 – $82,000 support band, sales accelerated quickly. The price action on the daily chart now reflects a clear bearish structure, with lower highs and lower lows firmly anchored.
Source: TradingView
Technical indicators confirm the shift. Bitcoin’s relative strength index [RSI] dropped to almost 23placing the asset deep into oversold territory.
Such measurements typically reflect aggressive liquidation rather than measured profit-taking, especially when accompanied by growing volume.
Increase in volume indicates forced selling
Trading volume rose sharply during the crisis, indicating that this move was not solely driven by limited liquidity. Instead, the rise points to forced selling and stop-loss triggers, especially among leveraged traders positioned for range continuation.
The accumulation/distribution indicator also continued to decline, reinforcing the view that net distribution is gaining momentum.
This suggests that capital is exiting positions rather than rotating within the market, a dynamic often observed during periods of heightened risk aversion.
While oversold conditions can sometimes precede a short-term relief, such rebounds are often vulnerable if the broader trend structure remains negative.
What to watch next
To stabilize sentiment, Bitcoin would need to regain broken support levels and show evidence of sustained demand, rather than short-lived, short-lived rallies.
Until then, volatility is likely to remain high, with downside risks still in view.
Final thoughts
- Bitcoin’s decline below its November 2024 level confirms a transition from consolidation to active distribution.
- Oversold signals indicate that selling intensity is high, but trend recovery will depend on regaining lost support rather than short-term rebounds.