The Current Battleground
Price Action: Bitcoin is hovering right around the $70,000 to $70,800 mark. It recently dipped as low as $70,052 during the Asian trading session, marking its lowest point since November 2024.
Support vs. Resistance: While bulls are fighting to use $70k as a floor (support), the momentum is heavy. If it fails to hold, analysts are eyeing $68,000 and even $65,000 as the next "safety nets."
Market Sentiment: The "Bull Score" from some on-chain metrics has recently hit zero, suggesting that the buyer base is shrinking and liquidity is getting tight.
Why is it struggling?
A few "macro headaches" are putting pressure on the price right now:
The "Warsh" Factor: The nomination of Kevin Warsh as the next Fed Chair has spooked investors. He’s viewed as a "hawk" who might shrink the Fed's balance sheet, which usually pulls liquidity out of speculative assets like crypto.
ETF Outflows: After a massive run, institutional spot ETFs have seen billions in outflows recently—nearly $3 billion in January alone.
Leverage Flush: A series of liquidations triggered when BTC broke below $76,000, creating a "snowball effect" that forced the price down to this $70k level.
The "Silver Lining"
It’s not all doom and gloom. Some major players, including MicroStrategy, have been "buying the dip" (adding about $75 million worth recently). Some Elliott Wave experts argue that as long as Bitcoin stays above this general zone ($70k–$74k), the long-term bull structure is technically still intact—it's just a very painful "reset."
Watch Level: If BTC can close a daily candle back above $74,200, it might signal that the $70k support held firm and a recovery is starting.