Bitcoin (BTC) dropped to $72,300 Tuesday, its lowest level since November 2024, before rebounding above $76,000 in volatile trading.
The selloff triggered $740 million in crypto liquidations over 24 hours as leveraged long positions collapsed.
The latest low broke Tuesday's bottom at $73,150. Bitcoin has now fallen more than 40% from its October 2025 peak above $126,000.
Macro assets weakened across the board Tuesday. Gold failed to hold $5,000 support while U.S. stocks opened lower.
What Happened
Bitcoin briefly rebounded above $76,000 following Tuesday's low before giving back gains. The cryptocurrency has traded between $70,000 and $79,999 for five straight days.
Long positions accounted for $554 million of total liquidations, with $287 million in Bitcoin longs and $267 million in Ethereum (ETH) longs wiped out. More than 200,000 traders saw forced position closures.
Trading company QCP Capital said the U.S. government avoiding a fresh shutdown eased near-term headline risk. However, Homeland Security funding was only extended through February 13.
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Why It Matters
Bitcoin has spent little time historically in the $70,000-$79,999 range, creating uncertainty about support levels. The zone lacks strong historical support or resistance data.
Traders increasingly target the $50,000 area as the next significant level. The 200-week exponential moving average sits near $68,000, potentially providing technical support.
Analyst Benjamin Cowen noted that Bitcoin sweeping prior lows historically triggers relief rallies. However, he warned failure to bounce could extend weakness into summer 2026.
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