Bitcoin Bulls Vanish as Price Slides Below $78,000: Is the Crypto Correction Just Starting?

If you were looking for a raucous Bitcoin rally to kick off February, you’re about to be disappointed. Instead, the world’s favorite digital asset is limping into the new month, trading below $78,000 for the first time since last spring. The bulls, once so loud you could hear them from Mars, have gone radio silent. Jim Cramer is asking where they went. Michael Saylor is apparently buying the dip. And the rest of the market? Mostly staring at the screens, refreshing, and wondering if this is the start of something much uglier.

The catalyst, if you can call it that, is a cocktail of macro and micro headaches. President Trump’s nomination of Kevin Warsh to replace Jerome Powell as Fed Chair has traders dusting off their 2018 playbooks. Warsh is known for his hawkish bent, and the mere whiff of tighter policy was enough to send Bitcoin careening through support like a bowling ball through a Jenga tower. The news cycle didn’t help: regulatory uncertainty, thin weekend liquidity, and a memecoin sector in meltdown all conspired to make this weekend a horror show for anyone long and levered.

Let’s get to the tape. Bitcoin’s price action over the past 48 hours has been a masterclass in how not to inspire confidence. After flirting with $80,000 for much of January, the digital asset cracked hard, slicing through $78,000 with barely a pause. According to Tokenpost, this is the lowest print since April of last year. The selloff was exacerbated by profit-taking, algorithmic selling, and a notable lack of buy-side depth. BONK, the memecoin du jour, cratered 18%, dragging the entire meme sector with it. MicroStrategy, undeterred, hinted at yet another megabuy, but even that failed to spark a bid.

The regulatory backdrop is not helping. With crypto legislation stalled in Congress and the SEC still playing whack-a-mole with token listings, institutional flows have dried up. Ripple’s push for bank adoption is a rare bright spot, but the market is in no mood for long-term narratives. Traders want liquidity, not hope. And right now, liquidity is about as abundant as humility on Crypto Twitter.

Context matters. Bitcoin’s recent correction is not happening in a vacuum. The broader risk asset complex is also feeling the pinch. Treasury issuance is draining liquidity, and the S&P 500 is showing signs of fatigue after a strong January. The correlation between Bitcoin and equities, once dismissed as a statistical fluke, is now front and center. When the Fed sneezes, Bitcoin catches a cold. And with Warsh’s nomination, the market is bracing for a hawkish turn that could send yields higher and risk assets lower.

Technically, the picture is grim. The $80,000 level, once a fortress, is now a memory. The next major support sits around $75,000, with a potential air pocket down to $70,000 if that breaks. RSI is oversold but not extreme, suggesting there’s room for more pain. Volume is anemic, and the order book is thin. If you’re looking for a V-shaped recovery, you might want to check back in a few weeks.

Strykr Watch

The technicals are ugly. $BTC is trading below its 200-day moving average for the first time in months, a level that has historically acted as a line in the sand for institutional buyers. The $78,000 to $80,000 zone was critical support, and its failure opens the door to a test of $75,000. Below that, $70,000 looms large. Resistance is now stacked at $80,000 and $82,500. RSI is printing 38, not quite panic territory, but certainly not bullish. The memecoin meltdown is a sideshow, but it’s adding to the risk-off mood. Watch for a flush if weekend liquidity evaporates further.

The bear case is straightforward. If $BTC can’t reclaim $80,000 quickly, the path of least resistance is lower. Macro headwinds, regulatory uncertainty, and a lack of institutional demand all point to further downside. A break below $75,000 could trigger stop cascades, with $70,000 as the next logical target. The risk is not just price, but sentiment. Crypto Twitter is eerily quiet, and that’s rarely a good sign.

But there are opportunities. If you’re nimble, the volatility is your friend. A flush to $75,000 or even $70,000 could set up a high-reward long, especially if macro conditions stabilize. MicroStrategy’s buying is a wild card. If Saylor steps in with another megabuy, the market could squeeze higher in a hurry. For now, though, the base case is more pain before any meaningful gain.

Strykr Take

This is not the time to be a hero. The technicals are broken, the macro is hostile, and the bulls are missing in action. But if you have dry powder and a strong stomach, a flush below $75,000 could be the buy of the quarter. Just don’t expect a moonshot overnight. The market needs to find a bottom, and that process could get messy. Strykr Pulse 38/100. Threat Level 4/5.

Date published: 2026-02-02 02:01 UTC