Bitcoin Price Plummets: Stunning 15-Month Low Under $73K Triggers $800M Liquidation Cascade

On February 4, 2026, the global cryptocurrency market experienced a severe downturn as the Bitcoin price collapsed to a 15-month low beneath $73,000. This dramatic sell-off, coinciding with a broader retreat in macro assets, liquidated over $800 million in leveraged crypto positions and shifted trader focus to critical support levels near $70,000. Consequently, market sentiment has turned decidedly cautious, with analysts scrutinizing chart patterns and macroeconomic cues for the next directional move.

Bitcoin Price Breakdown and Market Context

The Bitcoin price decline accelerated during the U.S. trading session on Wednesday, February 4th. Data from major exchanges like Bitstamp recorded lows dipping under $72,500. This move decisively broke below Tuesday’s prior bottom, establishing the lowest valuation for BTC since November 2024. The sell-off was not isolated to cryptocurrencies. Simultaneously, traditional haven assets like gold failed to hold the psychologically significant $5,000 per ounce level, while U.S. equity markets also opened lower. This correlated weakness suggests a broader risk-off sentiment permeating global markets, where investors are reducing exposure to volatile assets across the board.

Key Technical Levels: Following the breakdown, several technical benchmarks have become crucial for traders.

• $70,000 Support: This round-number level represents immediate psychological and technical support.
• 200-Week EMA (~$68,000): A long-term moving average often viewed as a bull market baseline during corrections.
• Previous Resistance/Support: Areas between $59,000 and $65,000, which acted as consolidation zones in late 2024, are now potential downside targets.

Analyzing the $800 Million Liquidation Event

The rapid Bitcoin price descent triggered a massive unwinding of leveraged positions. Data from analytics platform CoinGlass shows total cross-crypto liquidations surpassed $800 million within 24 hours, with long positions (bets on higher prices) bearing the overwhelming brunt. A liquidation heatmap indicated significant clusters of long leverage sat just above the $72,000 level, which acted as a trigger point when breached. This cascade effect exemplifies the heightened volatility and risk inherent in leveraged cryptocurrency trading, where rapid price moves can force automatic position closures, exacerbating the initial move.

Expert and Trader Sentiment Shifts

Market analysts and veteran traders have interpreted the price action as characteristic of a bearish phase. Trading firm QCP Capital noted in its market update that while near-term political risk from a U.S. government shutdown had eased, fiscal standoffs could quickly return, maintaining macroeconomic uncertainty. On social media platform X, prominent traders highlighted concerning technical signals. For instance, trader Roman pointed to high selling volume on downward moves, labeling it “bear market price action.” Another analyst, CJ, identified the $59,000-$65,000 range as a probable next major area of interest, contingent on whether the market experiences a relief bounce first. This collective analysis underscores a shift from bullish speculation to defensive risk management among market participants.

Macroeconomic Correlations and Future Catalysts

The synchronized decline of Bitcoin, gold, and stocks points to influential macroeconomic drivers. The failure of traditional safe havens like precious metals to rally during equity weakness is particularly notable. It suggests market participants may be moving to cash or sovereign debt, possibly in anticipation of tighter liquidity conditions or revised interest rate expectations. Furthermore, the temporary resolution of the U.S. budget impasse removed one immediate headwind but set another deadline for mid-February, creating a lingering overhang. For Bitcoin specifically, the focus now turns to whether institutional buying pressure, often associated with major ETF flows, will re-emerge at these lower price levels to provide a foundation for stabilization.

Potential Scenarios Ahead: Market technicians are evaluating two primary paths forward.

• Relief Rally: A technical bounce from oversold conditions near $70,000 or the 200-week EMA could occur, potentially retesting the $76,000-$78,000 area as new resistance.
• Continued Downtrend: A failure to hold $70,000 could open the door for a deeper correction toward the $60,000 zone, a level last seen in the third quarter of 2024, which would represent a more significant market reset.

Conclusion

The Bitcoin price reaching a 15-month low under $73,000 marks a significant technical and psychological event for digital asset markets. Triggering over $800 million in liquidations, this move highlights the asset’s inherent volatility and its growing correlation with broader macroeconomic sentiment. While key support levels near $70,000 and $68,000 offer potential stabilization points, trader analysis and price action suggest caution prevails. The coming weeks will be critical in determining whether this represents a healthy correction within a longer-term trend or the beginning of a more protracted bear phase. Market participants should monitor volume, ETF flow data, and macro indicators closely for the next directional catalyst.

FAQs

Q1: What caused the Bitcoin price to drop so sharply?
The drop was driven by a combination of technical breakdowns below key support levels, a broader risk-off sentiment affecting gold and stocks, and the forced closure of over $800 million in leveraged long positions, which accelerated the downward move.

Q2: What is a ‘liquidation’ in crypto trading?
A liquidation occurs when an exchange automatically closes a trader’s leveraged position because they have lost the collateral (margin) backing it. A cascade of liquidations can amplify price moves in either direction.

Q3: What are the most important support levels for Bitcoin now?
Immediate support is viewed near $70,000, followed by the 200-week Exponential Moving Average around $68,000. A break below these could see the market target the $59,000 to $65,000 range.

Q4: Did other cryptocurrencies fall as well?
Yes, major cryptocurrencies (altcoins) typically exhibit high correlation with Bitcoin during sharp market moves, meaning they also experienced significant declines, often with even higher percentage losses.

Q5: Is this a good time to buy Bitcoin?
This article does not provide investment advice. Purchasing during high volatility carries significant risk. Investors should conduct thorough personal research, understand the risks of cryptocurrency investing, and consider their own financial situation and risk tolerance before making any decisions.