Bitcoin slipped below $72,000 on 4 February, extending its recent downtrend and marking a fresh local low amid intensified selling pressure across spot and derivatives markets.
At the time of writing, Bitcoin was trading around $71,800, down roughly 5% on the day, after briefly dipping to an intraday low near $71,700, according to TradingView data.
The move places BTC at its weakest level since late 2024. It confirms a broader breakdown from the consolidation range that had held through much of January.
Source: TradingView
Spot market weakness deepens
Spot price action shows a clear sequence of lower highs and lower lows following Bitcoin’s failure to reclaim the $90,000–$92,000 resistance zone in mid-January.
Since then, repeated sell-offs have pushed price through successive support levels, with $80,000 and $75,000 offering little sustained demand.
Source: Coinglass
This weakness is reinforced by the Coinbase Bitcoin Premium Index, which has remained firmly negative in recent sessions.
The index, indicating U.S. spot demand, shows BTC trading at a discount on Coinbase relative to offshore exchanges. This suggests subdued buying interest from U.S.-based investors even as price declines.
Historically, prolonged negative readings on the premium index have coincided with periods of distribution rather than accumulation. This adds to the bearish near-term outlook.
Bitcoin long liquidations accelerate downside move
Derivatives data indicates that forced liquidations played a key role in accelerating the latest leg lower.
Over the past 24 hours, Bitcoin liquidations totaled more than $235 million, with long positions accounting for approximately $198 million, according to Coinglass data.
Source: Coinglass
The largest liquidation clusters were recorded on major exchanges, including Binance, Bybit, and Hyperliquid. Long positions were wiped out on these exchanges as BTC lost the $75,000 and $73,000 levels in quick succession.
Short liquidations remained relatively limited, highlighting that the move was driven primarily by overleveraged bullish positioning rather than a short squeeze.
The liquidation heatmap also shows reduced open interest following the sell-off, suggesting leverage has been flushed from the system — though this has not yet translated into a meaningful price rebound.
Market context remains fragile
Bitcoin’s decline comes amid broader risk-off conditions across crypto markets, with altcoins also posting sharp losses and overall market sentiment remaining cautious. While volatility has increased, there are few signs of aggressive dip-buying at current levels.
From a technical perspective, traders are now watching the $70,000 psychological level as the next major area of interest.
A decisive break below that zone could expose BTC to deeper downside. At the same time, any recovery attempt would first need to reclaim the $75,000–$78,000 range to signal stabilization.
Final Thoughts
- Bitcoin’s drop below $72,000 was driven by weak spot demand and heavy long liquidations rather than short-side pressure.
- Until spot buying improves and leverage resets further, downside risks are likely to remain elevated.