Bitcoin slid down $72,000 on February 4continuing the recent downtrend and marking a new local low amid increased selling pressure in the spot and derivatives markets.
At the time of writing, Bitcoin was trading around $71,800approximately down 5% on the day, after a brief dip to an intraday low nearby $71,700according to TradingView data.
This move puts BTC at its weakest level since late 2024. It confirms a broader breakdown of the consolidation margin that persisted for much of January.
Source: TradingView
Weakness in the spot market is increasing
Spot price action shows a clear sequence of lower highs and lower lows after Bitcoin failed to regain price $90,000 – $92.000 resistance zone in mid-January.
Since then, repeated sell-offs have pushed prices through successive support levels $80,000 and $75,000 offer little sustained demand.
Source: Coinglass
This weakness is amplified by the Coinbase Bitcoin Premium Indexwhich has remained firmly negative in recent sessions.
The index, which indicates U.S. spot demand, shows BTC trading at a discount on Coinbase to offshore exchanges. This indicates subdued buying interest from US investors, even if the price falls.
Historically, prolonged negative numbers on the premium index have coincided with periods of distribution rather than accumulation. This adds to the bearish near-term outlook.
Long liquidations of Bitcoin accelerate the downward movement
Derivative data indicates this is forced liquidations played a key role in accelerating the final leg bearing.
In the last 24 hours, Bitcoin liquidations totaled more than $235 millionof long positions amounting to approximately $198 millionaccording to Coinglass data.
Source: Coinglass
The largest liquidation clusters were recorded on major exchanges including Binance, Bybit and Hyperliquid. Long positions were wiped out on these exchanges when BTC fell $75,000 and $73,000 levels in quick succession.
The number of short liquidations remained relatively limited, indicating that this move was mainly driven by excessive bullish positioning and not a short squeeze.
The liquidation heatmap also shows reduced open interest after the sell-off, suggesting leverage has disappeared from the system – although this has not yet translated into a meaningful price recovery.
The market context remains vulnerable
Bitcoin’s decline comes amid broader risk conditions in the crypto markets, with altcoins also posting sharp losses and overall market sentiment remaining cautious. While volatility has increased, there is little sign of aggressive dip buying at current levels.
From a technical perspective, traders now view the psychological level of $70,000 as the next major area of interest.
A decisive break below that zone could expose BTC to a deeper downtrend. At the same time, in any recovery attempt, the $75,000 – $78,000 range to signal stabilization.
Final thoughts
- Bitcoin’s decline below $72,000 was driven by weak demand and heavy long liquidations rather than short-side pressure.
- Until spot buying improves and leverage resets further, downside risks are likely to remain high.