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February 2, 2026 — The cryptocurrency market is reeling this Monday morning after a brutal weekend sell-off that saw Bitcoin (BTC) crash through the psychological $80,000 barrier, touching nine-month lows. What began as a cautious retreat in late January has accelerated into a significant downturn, leaving analysts divided on whether this is a "buy-the-dip" opportunity or the definitive start of a 2026 bear market.
The Weekend Breakdown
Bitcoin fell as low as $75,700 on Saturday, marking a roughly 40% decline from its 2025 peak. The weekend’s thin liquidity amplified the move, triggering over $1.6 billion in liquidations across the broader crypto market.
Unlike previous dips that were met with aggressive "buying the dip" sentiment, this slide has been characterized by a notable absence of buyers. According to data from CryptoQuant, Bitcoin’s realized capitalization has flatlined, suggesting that the "new money" which fueled the 2025 rally has effectively stopped flowing.
Key Drivers of the Downside Pressure
Several macroeconomic and technical factors converged over the weekend to crush bullish momentum:
* Geopolitical Jitters: Renewed tensions between Iran and Western powers have pushed investors toward "risk-off" assets. Ironically, Bitcoin—often touted as "digital gold"—has failed to act as a hedge, instead trading in lockstep with volatile tech stocks.
* The "Warsh Effect" & Macro Policy: Despite the nomination of pro-crypto Kevin Warsh as the next Fed Chair, persistent services inflation and a stronger U.S. Dollar have increased pressure on DeFi liquidity and Bitcoin prices.
* ETF Outflows: Conviction among mainstream institutional buyers is wavering. Spot Bitcoin ETFs saw net outflows of nearly $1 billion in the final days of January as investors who entered at higher prices began to cut losses.
* Options Market Pivot: For the first time in months, bearish $75,000 put options on the Deribit exchange have reached parity in popularity with the once-dominant $100,000 call bets, signaling that traders are now hedging for a deeper move down.
Technical Support Levels to Watch
Market participants are now laser-focused on several critical zones:
| Level | Significance |
|---|---|
| $75,000 | The immediate "line in the sand." A failure here could trigger a secondary wave of capitulation. |
| $70,000 | Major historical support; many analysts view this as the "Value Zone" for long-term re-entry. |
| $85,000 | The current resistance level Bitcoin must reclaim to invalidate the immediate bearish trend. |
Analyst Outlook: Bear Market or Deep Correction?
The community is currently split into two camps. Carmelo Alemán of CryptoQuant suggests the market has entered a "capitulation phase," noting that a sequence of breakdowns across major support levels indicates a regime shift into a bear market.
Conversely, some "permabulls" like PlanC argue that corrections of 35-40% are historically normal for Bitcoin cycles. They suggest that the $75,000–$80,000 range may represent the "deepest pullback opportunity" of this cycle before a potential recovery in late Q1.
As of Monday morning, Bitcoin is trading precariously around $78,900, with the market remains on high alert for further volatility as Wall Street opens.
$BTC


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