Bitcoin's Rollercoaster Ride Continues as Price Dips Below $80,000 Amid Volatile Market Conditions

Bitcoin fell below $80,000 on February 1, 2026, marking a significant drop after a recent rally failed to hold critical levels. The price closed at $78,634 with a total market capitalization of $1.57 trillion, while trading volume reached $83.65 billion over the past 24 hours.

The decline reflects broader market sentiment and leveraged positions being liquidated as investors recalibrate expectations. Over $2.5 billion in crypto positions were liquidated, including a single $222.65 million ether trade.

Bitcoin's 24-hour range extended from $77,082 to $82,733, highlighting the wide swings and lack of clear direction. Analysts suggest that the market is in a period of consolidation as traders await clarity on key resistance and support levels.

Why Is Bitcoin Below $80,000?

Bitcoin's inability to maintain key resistance levels has led to a bearish outlook across all major timeframes. The price has broken through the $88,000–$90,000 range and is now trading near $76,000, with no clear signs of a reversal.

The drop has been exacerbated by the Federal Reserve's decision to keep interest rates unchanged at 3.50%-3.75%. This decision has bolstered the U.S. dollar, making alternative assets like Bitcoin less attractive.

Technical indicators reinforce the bearish bias. The 50-day, 100-day, and 200-day moving averages all sit well above current price levels, indicating continued pressure from the broader trend.

How Are Markets Responding to the Drop?

Ethereum and other altcoins also faced significant declines. Ethereum dropped below $3,000, while XRP slid beneath $1.90.

The broader crypto market lost around $111 billion in value over the last 24 hours. Liquidations surged past $1.6 billion, signaling increased panic selling as traders cut leveraged positions.

Despite the selloff, institutional interest in Ethereum and XRP has remained stable. Ethereum ETFs recorded inflows of $28 million in the latest session, while XRP ETFs saw nearly $7 million in inflows.

What Are Analysts Watching Next?

Analysts are closely monitoring Bitcoin's performance around $86,000 as a potential turning point. A sustained close above this level with strong volume could shift the bias toward a potential rally.

On the other hand, a breakdown below $76,000 could push Bitcoin toward its next major support zone near $75,500. This level has historically been a key demand area, and traders will watch for signs of buyers stepping in.

Technical indicators remain mixed. The RSI stands at 25, indicating oversold conditions, while the MACD remains below the signal line. The ADX at 30 suggests moderate trend strength, but not enough to confirm a reversal.

The broader market is also watching for signs of rotation from gold to Bitcoin. Some investors see potential in a long-Bitcoin, short-gold strategy, especially as gold attracts renewed retail and institutional interest.

Bitcoin's performance will also depend on the broader macroeconomic environment. A stronger dollar and delayed U.S. crypto market-structure rules have dampened investor interest.

Institutional investors are also watching the 4-hour and 1-hour charts for signs of stabilization. The price has been range-bound between $77,800 and $79,500, with no clear breakout yet.

If Bitcoin fails to reclaim $86,000 and re-establish itself above key moving averages, any rally is likely to be short-lived. Until then, the bearish bias remains intact, with momentum indicators suggesting continued downward pressure.

The next few days will be critical for Bitcoin as traders and analysts assess whether this selloff represents a buying opportunity or a continuation of a broader bearish trend.