Bitcoin extended its downside move on Tuesday, 3 February, sliding to its lowest level since November 2024. Heavy selling overwhelmed bids across spot and derivatives markets.
The decline marks a sharp escalation in downside momentum after weeks of fragile consolidation.
According to TradingView data, Bitcoin fell to around $73,000, posting a single-day loss of more than 7%. The move decisively broke below the mid-$80,000 support zone that had underpinned price action through January, opening the door to deeper downside tests.
Key support gives way as Bitcoin momentum turns sharply bearish
The latest sell-off follows multiple failed recovery attempts over the past month. Each rebound stalled at progressively lower highs, signalling weakening demand and growing seller dominance.
Once Bitcoin lost the $80,000–$82,000 support band, selling accelerated rapidly. Price action on the daily chart now reflects a clear bearish structure, with lower highs and lower lows firmly established.
Source: TradingView
Technical indicators confirm the shift. Bitcoin’s relative strength index [RSI] dropped to near 23, placing the asset deep in oversold territory.
Such readings typically reflect aggressive liquidation rather than measured profit-taking, especially when accompanied by expanding volume.
Volume surge points to forced selling
Trading volume rose sharply during the breakdown, suggesting the move was not driven solely by thin liquidity. Instead, the surge points to forced selling and stop-loss triggers, particularly among leveraged traders positioned for range continuation.
The accumulation/distribution indicator also continued to trend lower, reinforcing the view that net distribution is underway.
This suggests capital is exiting positions rather than rotating within the market, a dynamic often seen during periods of heightened risk aversion.
While oversold conditions can sometimes precede short-term relief rallies, such bounces tend to be fragile when broader trend structure remains negative.
What to watch next
For sentiment to stabilize, Bitcoin would need to reclaim broken support levels and show evidence of sustained demand, rather than short-lived short-covering rallies.
Until then, volatility is likely to remain elevated, with downside risks still in focus.
Final Thoughts
- Bitcoin’s drop below November 2024 levels confirms a transition from consolidation into active distribution.
- Oversold signals suggest selling intensity is high, but trend recovery will depend on reclaiming lost support rather than short-term bounces.