On the evening of January 31, the first cryptocurrency dropped below $80,000, losing about 7% in a single day.
Bitcoin found a local bottom just above $75,000, a level not seen since April 2025. At the time of writing, the asset had recovered slightly and was trading near $78,000.
This decline coincided with the end of January, marking the fourth consecutive month that the monthly chart for digital gold closed with a red candle.
Other cryptocurrencies in the top 10 by market capitalization also fell, with some dropping more than Bitcoin.
Ethereum fell below $2,500, losing over 10%, while Solana dropped below $100, down 11.5%.
According to CoinGlass, liquidation volume over the past 24 hours reached $2.6 billion, with nearly the entire amount, except for $163 million, coming from long positions.
The Crypto Fear and Greed Index fell to 14 points, the lowest since mid-December 2025.
The decline in digital assets occurred alongside precious metals, with gold dropping to $4,900 per ounce and silver to $85. However, these corrections followed historical highs, unlike cryptocurrencies, which have stagnated since late last year.
Expectations and Forecasts
A trader known as FrankAFetter pointed out that the True Market Mean indicator fell below the market price for the first time in two and a half years. This metric reflects the average purchase price of coins by investors, excluding miners.
Bitcoin falls below its True Market Mean price for the first time in 2.5 years. Last time this happened BTC was $29k. pic.twitter.com/rapIJ57ALx
— Frank (@FrankAFetter) February 1, 2026
“In simple terms, this is unfavorable for Bitcoin's price dynamics in the short and medium term,” added OnChainCollege.
Analyst Keith Alan suggested the possibility of a double bottom forming around $74,000, coinciding with a support line from last April.
This is why I said, “Gotta trade the market we’ve got, not the one we want.”
— Keith Alan (@KAProductions) January 31, 2026
Local Low at $80.5k was annihilated. If support at the 2025-04-07 Timescape Level doesn’t hold, there’s a potential double bottom opportunity around the Lower Low at, wait for it…….$74,420.69. https://t.co/4zRBCgKnOh pic.twitter.com/rbDPTdzfrz
MN Trading founder Michaël van de Poppe noted that the RSI on Bitcoin's weekly chart against gold has dropped below 30.
Historically, this is the area where the bear market of $BTC is about to end or ends.
— Michaël van de Poppe (@CryptoMichNL) January 31, 2026
Why?
RSI <30 vs. Gold is a trigger that has been hit during the bear market low in 2015, 2018, and 2022.
It's hitting again. pic.twitter.com/kDK4XWOH8H
“[…] this is a signal that has triggered during bear market lows in 2015, 2018, and 2022. And it’s triggering again,” the expert added.
Analyst Plan C noted that Bitcoin's current decline represents a nearly 40% deviation from its record high of $126,000.
$75,000–$80,000 is a 37% to 40% correction.
— Plan C (@TheRealPlanC) January 31, 2026
Decent chance this will be the deepest pullback opportunity this Bitcoin bull run.
This is my personal opinion, not financial advice.
“There’s a good chance this will be the deepest correction during this bull market for the first cryptocurrency,” he suggested.
It’s worth noting that CryptoQuant experts have observed signs of capitulation among Bitcoin investors.