FXOpen
As the BTC/USD chart shows, prices dropped below $74,000 yesterday. This marks the lowest level since November 2024, when the cryptocurrency was rallying on news of Trump’s election victory.
At the same time, sentiment indicators are signalling “extreme fear” across the market. This was reinforced by the break below the key April 2025 low near $74,450.
The media has been circulating increasingly alarming headlines:
→ Michael Burry, well known for his bearish calls, has suggested that a drop below the $70k level could create problems for the largest coin holder, MicroStrategy (MSTR);
→ Matt Hougan, Chief Investment Officer at Bitwise, warns that the market may be heading for a “full-blown” crypto winter rather than a simple correction.
Technical Analysis of the BTC/USD Chart
The price continues to move further away from the support level whose break we highlighted on 30 January.
At the same time, the market appears extremely oversold:
→ the price has fallen below the lower boundary of the previously drawn descending red channel;
→ the RSI indicator is forming bullish divergences.
Under these conditions, it is reasonable to assume that the market may be setting up for a technical rebound. This scenario looks particularly plausible given the scale of long position liquidations — around $2.5 billion were wiped out on 31 January alone.
If a recovery does unfold, a key test of bullish intent will be the psychological $80k area, where bears previously held clear control while breaking below the lower boundary of the descending channel.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service (additional fees may apply). Open your trading account now or learn more about crypto CFD trading with FXOpen.
*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
AMD Shares Surge After High-Profile Deal With Meta Platforms
Yesterday, it was reported that Advanced Micro Devices (AMD) has expanded its collaboration with Meta Platforms. The companies struck an agreement under which:
→ Meta will purchase AMD equipment with a total capacity of 6 gigawatts for its AI infrastructure. Deliveries
The Dollar Index (DXY) May Close February Higher
The second half of February has seen the dollar index strengthen, driven by a combination of bullish factors:
→ A hawkish Fed stance. Minutes from the latest FOMC meeting revealed differing views on rate cuts. With inflation remaining resilient, some members
Euro Consolidates After the Impulse: Market Awaits Macro Data
The euro has moved into a phase of correction and consolidation ahead of key macroeconomic releases. In EUR/USD, a technical pullback is unfolding following the previous decline, while EUR/CAD continues a more extended corrective move within its medium-term