BTC Takes Support From $75K: Is The Bottom In?

Current Market Snapshot

Bitcoin appears to have found short-term footing after a sharp selloff, with buyers stepping in aggressively around the $75,000 level. While it may be too early to call a full trend reversal, the confluence of technical, statistical, and psychological factors suggests a local bottom could be in place, even as broader macro risks remain.

Feb 02, 2026 | Post Asia Session

BTC
+1.9%

Key Takeaways

• Bitcoin defended the $75,000 level after a steep, high-momentum selloff.
• The drop was large enough to justify a 3–5% relief rally purely on market structure.
• $75K acts as a major psychological and proportional level, representing three-quarters of the $100K milestone.
• While a local bottom may be forming, a deeper macro correction cannot be ruled out yet.

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Bids After Sharp Selloff

Bitcoin (BTC) rebounded modestly after printing lows near $75,000, following one of its fastest multi-day declines in recent months. On the 4-hour chart, the asset showed clear signs of seller exhaustion, with long lower wicks and rising volume signaling aggressive dip-buying interest.

At the time of writing, BTC was trading near $77,800, up roughly 1.9%, after bouncing from intraday lows just above $75K.

Market participants noted that the selloff itself may have created the conditions for a bounce.

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Why $75K Matters More Than It Looks

The $75,000 level on BTC is not just another horizontal support.

Traders pointed out three overlapping reasons why this zone attracted demand:

1. Round-Number Psychology
   $75K represents three-quarters of $100,000, a major psychological milestone that continues to anchor long-term expectations. Such proportional levels often act as reflexive support during corrections.
2. Magnitude of the Decline
   The prior drop was sharp and near-vertical. Historically, moves of this nature tend to trigger mechanical relief rallies of 3–5%, even in weak market conditions, as short sellers take profits and sidelined buyers step in.
3. Volume Confirmation
   The bounce occurred alongside a noticeable increase in traded volume, suggesting that the move was driven by participation rather than illiquid price action.

Together, these factors helped stabilize price action, at least in the short term.

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Long-Term Models Still Signal Undervaluation

Beyond the short-term technical bounce from $75,000, longer-term valuation models continue to suggest that BTC remains deeply discounted. A quantitative analysis published earlier this week showed Bitcoin trading roughly 35% below its implied fair value based on a 15-year power-law trend. Historically, similar deviations have not resulted in prolonged sideways action, but rather sharp mean reversion, with backtests showing positive 12-month returns following every comparable oversold event since 2010.

The analyst behind the model argued that BTC behaves as a bounded system, anchored by real-world energy costs and miner economics. When prices fall toward production levels, issuance slows as miners shut off, reducing sell pressure and stabilizing price action. Macro investor Raoul Pal echoed this view, noting that Bitcoin also appears discounted relative to global liquidity trends, suggesting the current divergence reflects timing and positioning rather than a breakdown in long-term demand.

Local Bottom In

Several traders cautioned that while the local bottom may be in on BTC and other crypto assets, this does not automatically imply the end of the broader correction.

Bitcoin remains below key higher-timeframe resistance levels, and market structure still reflects lower highs following the recent rejection from the $80K–$82K region. Any failure to reclaim those levels could result in further consolidation—or another leg down—before a more durable trend forms.

In other words, the market may be transitioning from panic selling to range-bound repair, rather than straight back into a full bullish continuation.

Macro Bottom Still Likely Ahead

From a wider macro perspective, analysts continue to argue that BTC’s true cycle bottom may still be forming.

Liquidity conditions, risk-asset correlations, and broader market positioning suggest that while downside momentum has slowed, structural clarity is still missing. This keeps the door open for additional volatility in the weeks ahead, even if the $75K region holds for now.

As one trader summarized:

“A local bottom can exist inside a larger corrective phase. Both can be true at the same time.”

What To Watch Next

• $75,000: Must hold on any retest to maintain the local-bottom thesis.
• $79,400 – $82,300: Key resistance zone where sellers previously stepped in.
• Volume & Follow-Through: Relief rallies without continuation often fade quickly.

For now, BTC appears to be catching its breath after an aggressive flush—but whether this bounce evolves into something larger remains an open question.

Disclaimer:
This article is for informational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency markets are highly volatile, and price movements discussed may not reflect future performance. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.

FAQs

Is the Bitcoin bottom in?

A local bottom may be in around $75K based on price action and volume. However, the macro or cycle bottom could still be forming.

Why did Bitcoin bounce from $75K?

The level combines psychological significance, proportional importance relative to $100K, and a selloff large enough to trigger a technical relief rally.

How big can a relief rally be?

Historically, sharp selloffs often see 3–5% rebounds, even without a trend reversal. That aligns with the current bounce.

Does this mean Bitcoin is bullish again?

Not yet. The market needs to reclaim and hold above key resistance levels to confirm a bullish continuation.

Could Bitcoin still go lower?

Yes. While $75K is acting as support, losing it decisively would reopen downside risk.

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