Why Is Bitcoin Crashing? Technical Analysis Shows Sellers Still in Control

11.5x More Interest in ‘Why Is Bitcoin Crashing?’Search interest around ‘why is Bitcoin crashing’ has surged by 11.5x in just a week, again as crypto market continues to slide and those that have tried to buy the dip, get stopped out again, or worse – liquadated. Why is bitcoin crashing then? While headlines often rush to pin each move on a single catalyst, the reality is far more complex – and far less certain.Bitcoin is not falling because of one definitive reason. In trending markets, especially bearish ones, there are always many possible explanations, and we rarely know the true weight of each factor. Instead of chasing narratives, the more reliable approach is to study price behavior, buyer and seller activity, and market structure.Bitcoin crash in context: the bigger pictureBitcoin futures reached an all-time high of $127,240 on October 6, 2025. Since then, the market has undergone a sustained bearish phase. As of today, Bitcoin has traded as low as $70,755, marking a decline of more than 44% over 171 days.That magnitude matters. When an asset is already deep into a bearish cycle, the question is no longer “what single event caused today’s drop?” but rather whether the broader downtrend is weakening or still intact.So far, the data continues to show that downside pressure remains dominant.Why Bitcoin is dropping: structure over storiesIt is tempting to explain every dip with a fresh headline – macro fears, regulation rumors, ETF flows, geopolitics, or risk-off sentiment. Some of these explanations may be partially true. Others may not matter at all.The problem is that we never know which factors actually matter most at any given moment.What we can observe is this:Sellers continue to show follow-through on ralliesUpside attempts fail quickly rather than attracting sustained demandLower prices are being accepted rather than rejectedThis behavior is consistent with a market that remains in a bearish structural phase, not one forming a confirmed bottom.What bitcoin options (IBIT) activity is telling usOne way to gauge market sentiment is by looking at options trading. While we cannot know what traders are thinking or what information they have, we can observe how they are positioning.By comparing the volume of options that benefit from price going up versus price going down, we get a sense of whether traders are leaning more bullish or bearish on the day. If more option volume is positioned for downside, it suggests traders are protecting against or betting on lower prices. If more volume is positioned for upside, it suggests growing optimism.In this case, the balance of options activity leans bearish. Apx 55% is bearish and 45% bullish.A larger share of option volume is tied to downside outcomes, indicating that more traders are positioning for further weakness rather than a near-term recovery. This does not predict price by itself, but it adds context to the broader bearish tone already visible in price action.Is Bitcoin nearing the end of its crash and into a potential buy zone?From a technical perspective, Bitcoin is approaching an area where buyers may begin to show interest. That zone roughly spans from $65,000 to $71,000. Yes, it is wide area, I know, but it is a very relevant zone to watch for a possible change in the phase of the market. That may also take days and weeks for BTC to build its base, since V recoveries are possible, but a little more rare. It is a relevant zone to watch and stay patient. We don’t need to be the first ones hopping on the move, dreaming about being the first in line since that typically does not work out well.Today’s session has already started to probe the upper part of this zone, which makes the next phase especially important to monitor.Bitcoin futures analysis – medium-term structure remains under pressure
Recent trading activity points to sellers being more effective than buyers on rebounds. Attempts to push higher have met supply, while downside moves have shown more acceptance than upside probes. This tells us that demand is present, but not strong enough yet to overpower selling pressure.Key areas to watch for bitcoin today! Price for bitcoin futuresThe 71,500-72,000 zone remains a critical reference. Holding below this area keeps pressure on the market.A sustained move back above 73,500-74,000 would suggest sellers are losing control and the market is moving back toward balance.Below 70,000, acceptance would increase downside risk and likely shift sentiment more decisively bearish.ScenariosBearish scenario
If price continues to be accepted below recent resistance and selling pressure shows follow-through, downside continuation toward lower support zones becomes more likely.Bullish scenario
If sellers fail to press lower and price reclaims and holds above the 73,500-74,000 area, it would signal renewed demand and a potential transition back into a range or recovery phase.Market bias score for bitcoin at the time of this analysis: -3 (moderately bearish)
This score reflects a clear but not extreme seller advantage. The bias is not deeply negative because downside momentum is controlled rather than aggressive. A sustained reclaim of resistance would quickly neutralize this view.What would change the viewSustained acceptance above 74,000Clear loss of downside follow-through on sell attemptsStrong relative strength versus the broader crypto marketRisk note
This analysis is intended for educational and decision-support purposes only. It is not financial advice. Markets are uncertain, and all trading or investing decisions carry risk.For real-time trade ideas, follow-ups, and market insights across stocks, indices, commodities, and crypto, check out the investingLive Stocks Telegram channel.
Trade ideas are shared for educational purposes only and at your own risk.What to watch instead of guessing the bottomFor traders and investors asking whether the Bitcoin crash is ending, the focus should shift from prediction to observation:Do sellers lose momentum as price trades deeper into this zone?Does price begin to reject lower levels instead of accepting them?Is there evidence of buyers stepping in with follow-through, not just short-lived bounces?At the moment, there are no clear signs of meaningful buyer control or a bullish reversal attempt. Until that changes, upside moves should be treated cautiously.Bottom line for those seeking why bitcoin is crashing and where is the reboundBitcoin is not crashing because of one single reason. It is declining because it remains in a bearish market phase, where sellers continue to dominate and buyers have yet to reclaim control.The $65,000 to $71,000 region is an important area to watch, not to blindly buy. Real confirmation will only come from changes in price behavior and participation, not from headlines. We will have to look at the price reaction within this zone, the volume, the order flow, so……Stay tuned to investingLive.com for your strategic Bitcoin technical analysis, order flow insights, and real-time market updates as this critical zone continues to develop. For now, there is no dip buying yet but it may be getting close!———————–Will Bitcoin Stop Crashing? The Live Bitcoin Updates from the investingLive Desk!BTC futures – trader live update
Timestamp: 05:05 UTC | Feb 5Bitcoin futures are trading near $71,700, still operating beneath key reference levels after the recent selloff. While downside momentum has slowed, price action continues to suggest that the market is stabilizing under pressure rather than turning higher.From a structural perspective, price remains below VWAP, and recent rebounds have struggled to hold beyond the mid-range. Earlier reactions from the $71,000–$71,200 area showed responsive buying, but the follow-through has been limited, pointing to a corrective bounce rather than a shift in control.The recent POC remains overhead, reinforcing the idea that value is still developing at lower levels. As long as price stays capped beneath that area, sellers retain an advantage even if volatility compresses.What to watch nextBelow $71,000
Clean acceptance below this area would signal that the market is ready to resume downside exploration, opening the door for a retest of recent lows.$71,800–$72,200
This zone is acting as a short-term balance area. Choppy trade here suggests digestion, not resolution.Above $72,500
Sustained trade above this level, especially if value begins to build higher, would indicate that selling pressure is fading and conditions are shifting toward balance.For now, the market appears to be pausing within a broader bearish structure, with two-sided trade developing but no decisive reclaim of control.Market bias score: -3 (bearish, but stabilizing)
This reflects continued structural pressure from sellers, tempered by slowing downside momentum. Direction from here will depend on whether price is accepted below $71,000 or can reclaim higher value.This update is for educational and decision-support purposes only. Trading and investing involve risk.
This article was written by Itai Levitan at investinglive.com.

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