Bitcoin Dips Below $71k, its Lowest Level since October 2024

TL;DR

• BTC is down 7% in the last 24 hours and briefly dropped below the $71k level.

• The bearish performance comes amid poor liquidity in the market.

BTC Temporarily Slips Below $71k

The cryptocurrency market has continued its bearish start to February, with leading coins and tokens currently in the red.

Bitcoin, the leading cryptocurrency by market cap, is down by more than 7% in the last 24 hours and briefly dropped to the $70k region. At press time, BTC is trading around $71,070 per coin, its lowest level since October 2024,

While commenting on the latest market conditions, Tony Severino, the Market Analyst at YouHodler, pointed out that Bitcoin remains locked in a tightening range, but the more important signal is emerging on the monthly timeframe.

Bollinger Bands on the monthly chart are the tightest they have ever been, reflecting an extreme level of volatility compression. At the same time, Bitcoin continues to trade below the weekly basis line, with only days left before a weekly close that would confirm acceptance beneath it.

“Historically, sustained closes below the monthly Bollinger basis have often preceded capitulation-style moves in the months that follow. This does not guarantee immediate downside, but it reinforces the idea that time is being compressed rather than trend resolved. When volatility finally expands from these conditions, the resulting move has tended to be decisive — and markets rarely give ample warning once that expansion begins,” Severino added.

With Bitcoin in the red, altcoins have also recorded massive losses in the last 24 hours. Ether, the leading altcoin by market cap, risks dropping below $2k after losing 5.5% of its value in the last 24 hours.

BNB has dropped below $700 as it is now down by 50% from the all-time high it reached a few months ago. Ripple’s XRP has also dropped below the $1.44 support level as the bearish price action persists.