Bitcoin bounces from ten-month lows, but …

5 February 2026

Written by Antonio Di Giacomo, Senior Market Analyst at XS.com

Bitcoin bounces from ten-month lows, but bearish pressure continues to dominate the market

Bitcoin managed a technical rebound from levels near $74,000–$75,000, an area
that marked the lowest prices in nearly ten months following heavy liquidations over
the weekend. However, the recovery has been limited, and the cryptocurrency
continues to trade in the $76,000–$79,000 range, still below the psychological
$80,000 threshold, highlighting the market’s persistent weakness.
A wave of massive liquidations in the derivatives market drove the recent correction.
In just two sessions, leveraged positions worth more than $2.5 billion were closed,
mainly concentrated in long bets. The typically low weekend liquidity amplified price
moves, triggering sharp declines and increasing intraday volatility.
Despite the technical rebound, sentiment remains fragile. Bitcoin is down more than
30% from its late 2025 highs, when it traded above $125,000. This correction has led
many investors to reduce exposure and prioritize defensive strategies amid the lack
of clear stabilization signals.
The macroeconomic backdrop continues to weigh on risk assets. The nomination of
Kevin Warsh as a potential next Chair of the Federal Reserve has reinforced
perceptions of a more restrictive monetary policy, strengthening the U.S. dollar and
pressuring interest-rate-sensitive instruments such as Bitcoin and the broader crypto
market.
Adding to the uncertainty is the delay in the release of the U.S. employment report
due to the partial government shutdown. The temporary absence of key data has
increased market caution, making it harder to form clear expectations about the path
of monetary policy and heightening price sensitivity to any macroeconomic
developments.
On the regulatory front, tensions persist between traditional banks and companies
within the crypto ecosystem. Disagreements over the regulation of yield-bearing
stablecoins remain unresolved after recent meetings failed to deliver concrete
progress. While the conventional financial sector warns of potential systemic risks,
crypto firms argue these products are essential tools for liquidity and market
expansion.
Pressure is also evident in the behavior of large institutional players. Recent volatility
has prompted adjustments to accumulation strategies, particularly among

participants with significant exposure, contributing to uneven flows of buying and
selling in the spot market.
From a technical perspective, Bitcoin faces significant resistance in the
$79,000–$82,000 zone, a range that has capped recovery attempts. Until prices
manage to consolidate above these levels, support near $75,000 will remain critical
to prevent an extension of the correction and new episodes of heightened volatility.
In conclusion, Bitcoin has rebounded from recent lows, but the market remains
cautious. Billion-dollar liquidations, macroeconomic uncertainty, expectations of
tighter monetary policy, and ongoing regulatory tensions continue to limit risk
appetite. In this environment, volatility remains elevated, and the recovery appears
fragile, pending clearer signals that could define a sustained trend reversal.

 

Zaid Barem / ymm