**Bitcoin Daily Market Update – Feb. 04, 2026**
Bitcoin remains under bearish pressure on the higher timeframes, but selling momentum has noticeably weakened after the sharp sell-off into the **72,800–73,000** demand zone. This area triggered a strong reaction from buyers, confirmed by long lower wicks and increased volume, signaling that short-term downside liquidity has likely been absorbed. Still, this rebound should be viewed as a technical reaction rather than a confirmed trend change.
Price is currently ranging between **76,000 and 77,000**, trading below key resistance levels and major moving averages. This behavior reflects a pause in the downtrend — sellers have lost aggression, yet buyers have not shown enough strength to regain control. Market volatility is tightening, often a sign that a larger move is approaching.
From a resistance perspective, **77,800–78,500** stands out as the first major supply zone. A sustained break above this region could allow price to push toward **79,500–81,000**, where strong selling interest is expected to re-enter. Any rally into this zone should be treated cautiously, with profit protection prioritized.
On the downside, **75,000–74,500** continues to act as the most important support area. As long as Bitcoin holds above this range, the probability of a deeper sell-off remains limited. However, a daily close below **74,500** would weaken the current recovery attempt and reopen downside targets toward **72,000 and lower**.
**Trading plan for today:**
* **Long positions:** If positioned from lower levels, manage risk carefully and trail stops below **75,000**.
* **Short positions:** Avoid chasing price here; look for rejection signals near resistance instead.
* **No position:** Staying patient is key — wait for a clear breakout or breakdown.
At this stage, Bitcoin is neither in a bullish recovery nor in free fall. The market is at a critical decision point .
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