📊 Bitcoin & Crypto Market Update

February 4, 2026

After one of the sharpest sell-offs in over a year, the crypto market finally showed signs of stabilization and relief buying today. While fear remains elevated, price action suggests that the worst of the forced selling may be behind us—for now.

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🔄 Today’s Price Action (Feb 4, 2026)

• Bitcoin (BTC) rebounded from the ~$73,800–74,200 capitulation lows
  → Traded between $77,900–79,100
• Peak intraday bounce: ~+6.4% from Monday’s bottom
• Ethereum (ETH) and most top-20 altcoins followed suit with 3–7% gains
• 24h liquidations collapsed
  → From a $2.55B+ cascade to under $400M
• Crypto Fear & Greed Index: 16–19
  → Still deep in Extreme Fear territory

This kind of price recovery following such heavy liquidations is often associated with short-term relief rallies or early base-building.

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⏪ What Happened Last Week?

• Total crypto market cap dropped by approximately $460–490 billion in just 5–6 days
• Bitcoin printed its lowest level since November 2024, erasing all post-election gains
• Excessive leverage on the long side triggered one of the 10 largest single-event liquidations in crypto history
• Daily & weekly RSI across major assets hit multi-month lows
  → Classic oversold conditions rarely sustained for long periods

In short: leverage broke the market before fundamentals had time to react.

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📐 Key Levels to Watch

Asset	Current Price (approx.)	Support	Resistance	Notes
Bitcoin (BTC)	$78,400–78,900	$76,200–76,800	$81,500–83,200	Must hold the $76k demand zone
Ethereum (ETH)	~$1,650–1,700	$1,580–1,620	$1,760–1,820	Moving largely in sympathy with BTC
Solana (SOL)	~$96–100	$88–92	$105–112	Lagged during the bounce but showing relative strength

⚠️ A clean reclaim of resistance with volume is needed to confirm trend reversal. Until then, rallies remain vulnerable.

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🔍 Market Structure & On-Chain Context

• Open interest has reset sharply, reducing the probability of another immediate liquidation cascade
• Funding rates across major exchanges have normalized or flipped slightly negative
• Spot buying (especially BTC) appears stronger than derivative-driven demand
• Long-term holders continue to accumulate, while weak hands were flushed out

This environment typically favors range formation before a decisive move.

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⏳ Short-Term Outlook (Next 3–7 Days)

Bullish case:

• BTC reclaims $82,000+
• Confirms higher low above $76k
• Opens path toward $85k–88k

Bearish case:

• Failure to reclaim $82k
• Weak volume on rebounds
• Likely re-test of $74–76k support zone

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🧠 Investor Takeaway

Many spot investors view current levels as increasingly attractive due to:

• Deeply oversold momentum indicators
• Significant leverage washout
• Liquidation pressure largely exhausted

That said, volatility remains elevated, and patience is key. This is a risk-defined environment, not a confirmed trend reversal—yet.

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As always, manage risk, avoid excessive leverage, and let price confirm direction before committing heavily.