Bitcoin price sheds 2% to $71,000, hits lowest level in 15 months. Can it fall further?

Bitcoin prices slumped nearly 2% to $71,000 — its lowest level in 15 months — on Thursday, February 5, as a broad risk-off sentiment swept through global markets.

The world’s largest cryptocurrency has been on a downward trajectory, losing over 42% from its October peak of $126,000 last year.

During Asian trading hours on Thursday, Bitcoin dropped to a low of $71,540, its weakest level since November 6, 2024 — the day after Donald Trump was re-elected as US president.

On Wednesday, Bitcoin touched $71,739, plunging more than 5% during the day. The overall cryptocurrency market has also shed nearly $460 billion in value over the past week.

What's behind the Bitcoin price slump?

Experts opined that the cryptocurrency market is under pressure due to a risk-off move across global markets rather than a crypto-specific shock.

“Selling pressure in global equities, particularly technology stocks, spilt over into digital assets. Elevated leverage in crypto amplified the move, triggering a wave of forced liquidations as prices fell rapidly,” said Nischal Shetty, Founder, WazirX.

He stressed that there has been no material deterioration in Bitcoin’s underlying network fundamentals, and the move has been driven primarily by positioning, sentiment and macro correlations.

He added that market sentiment remains fragile, shaped by tightening liquidity conditions, uncertainty around global growth and caution ahead of key macroeconomic data and corporate earnings.

Meanwhile, flows into US-listed Bitcoin exchange-traded funds remained volatile. Following net inflows of about $562 million on Monday, the group recorded net outflows of $272 million on Tuesday, according to Bloomberg-compiled data.

Bitcoin's near-term outlook

Piyush Walke, Derivatives Research Analyst, Delta Exchange, believes that $72,000 remains an important support for Bitcoin. If this level fails on a sustained basis, the price could slide toward $68,000, with $64,000 acting as the next major floor.

Shetty also sounded cautious on Bitcoin's technical setup, suggesting that momentum indicators remain weak. “Bitcoin is trading well below its short- and long-term moving averages, reflecting a firmly bearish trend. Oscillators such as MACD and momentum indicators continue to signal downside pressure, while extremely low RSI and stochastic readings suggest the market is stretched in the short term,” he said.

The $70,000 zone stands out as a key area being closely watched, as it aligns with major support levels across multiple pivot frameworks, opined Shetty, adding that the price action is likely to remain volatile and reactive in the near term.

On the other hand, Avinash Shekhar, Co-Founder&CEO, Pi42, said that despite the near-term pressure and thinning liquidity, Bitcoin remains locked in a broad consolidation band.

“A firm defence of current support could lay the groundwork for a gradual recovery and renewed upward momentum in the sessions ahead,” Shekhar added.

(With inputs from Bloomberg)

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.