Bitcoin plummets 38%, hitting the $77,000 mark! Is the bull market over or a new window for entry?
February 2 News, Bitcoin has sharply retreated from its all-time high, with a maximum decline approaching 38%. It is currently hovering around $77,000, marking the most intense correction in this rally cycle. This correction quickly propagated throughout the entire cryptocurrency market, with altcoins also under pressure. Market sentiment shifted from optimism to caution, and volatility has significantly increased.
As the price declined, leveraged positions were rapidly liquidated, and a wave of liquidations accelerated the downward momentum. Unlike previous “dip and rebound” patterns, this sell-off has persisted for several weeks, reflecting a change in market structure. Analyst PlanC pointed out that the 38% drop is close to extreme levels seen in previous bull markets, and such deep corrections often serve to clear excessive leverage, laying a more solid foundation for subsequent movements.
From a technical perspective, the $75,000 to $80,000 range is considered a key support zone. This area is the core price range of early consolidation phases, where strong buying has historically appeared multiple times. On-chain data shows that large holders have been continuously increasing their positions within this range. Such funds often act as a “buffer,” helping to suppress further downside risk.
Despite short-term pressure, the longer-term structural trend remains upward. Bitcoin’s price is still above the long-term trendline, and the higher lows and higher highs have not been broken. On a macro level, the global liquidity environment has eased compared to previous tightening phases, making risk assets more likely to stabilize. Bitcoin has historically performed well in similar environments.
This correction has also reshaped trader sentiment. Retail investor sentiment has cooled significantly, with panic selling increasing. Meanwhile, experienced funds are beginning to look for entry opportunities near emotional lows. At the same time, capital has temporarily flowed back into Bitcoin, boosting its market share, while altcoins are entering a correction phase.
Looking ahead, if the price remains above $75,000, the market may enter a period of sideways consolidation to build momentum for the next rally. If this level is broken, attention should turn to lower historical support levels. Based on current data, the trend appears more inclined toward sideways accumulation rather than a trend-breaking collapse.
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