Bitcoin Recovers to $78K After Dip, Analysts Split on Path to All-Time Highs

YEREVAN (Azat TV) – Bitcoin’s price touched a low of $74,420 this week before stabilizing and recovering to trade near $77,986 on Tuesday, February 3, 2026, prompting diverse predictions from market analysts regarding its immediate future. The cryptocurrency’s recent volatility, marked by a sharp weekend selloff, has ignited debate over whether it is poised for a significant rebound towards its all-time highs above $126,000 or faces further downward pressure in the coming weeks.

The recent price action saw Bitcoin (BTC) dip to a level that one analyst from Finance Magnates had predicted three months prior in November 2025. This analyst, who correctly targeted the $74,000 mark, is now actively accumulating Bitcoin at current levels, anticipating a potential return to previous highs. The market’s stabilization comes after a period of intense selling, with crypto strategist Joel Kruger of LMAX noting early signs of recovery, particularly the ability of Bitcoin to hold key longer-term technical support levels and show improving intraday momentum.

Bitcoin’s Path to New All-Time Highs

For Bitcoin to regain its bullish trajectory and aim for new all-time highs beyond $126,000, it must successfully navigate several critical resistance levels, according to technical analysis. The primary roadmap outlined suggests a three-step process to confirm a sustained uptrend.

First, Bitcoin needs to reclaim the consolidation range established between November and late January, which means moving above the $84,000-$85,000 mark. This move would signal that buyers are reasserting control over the market. Subsequently, breaking above the 50-day exponential moving average (EMA), currently around $89,000, would confirm a shift in short-term momentum to bullish, attracting more technical traders to long positions.

The most critical level, however, is $97,000. This price point serves as both the upper boundary of the months-long consolidation range and the 200-day moving average. For many analysts, including the Finance Magnates contributor, the 200-day EMA is the decisive battleground that separates an uptrend from a downtrend. A confirmed breakout above $97,000 would not only signify an escape from the consolidation but also flip the 200-day EMA from resistance to support, providing greater certainty for a return towards all-time highs.

Analyzing Bitcoin’s Recent Price Correction

The sharp descent to $74,000 was not solely driven by technical bearish signals but also by underlying structural fragilities within the market, as explained by Paul Howard, Director at Wincent. Howard highlighted that during periods of market stress, many market makers tend to withdraw liquidity, which can amplify selloffs and lead to significant “gap downs” in price.

Furthermore, Howard identified issues with “hundreds of second-tier venues” that possess poorly documented or inadequate liquidation mechanisms. The weak creditworthiness of these platforms discourages legitimate liquidity providers from posting real liquidity, creating a vicious cycle that exacerbates market downturns. Despite these structural concerns, Joel Kruger emphasized that on-chain and flow-based indicators have shown “no material deterioration,” suggesting that Bitcoin’s medium-term technical picture remains largely intact.

The coordinated risk-off movement in global markets, influenced by factors such as the nomination of Kevin Warsh for Fed Chair and geopolitical tensions involving Iran, also contributed to the selloff. However, Bitcoin’s ability to hold the $74,000 support level and recover towards $78,000 amidst these headwinds is seen by some as a reinforcement of its underlying resilience.

Bearish Scenarios and Market Structure Concerns

While a bullish recovery remains a strong possibility for some, analysts are also preparing for alternative bearish scenarios. Should Bitcoin fail to reclaim the $84,000-$85,000 consolidation range and instead break below current levels, the next significant support is anticipated around $68,000. This level corresponds to the 200-week exponential moving average, which typically provides long-term trend support.

In an ultra-bearish scenario, Bitcoin could potentially target $53,000. This level represents a 100% Fibonacci extension from the current trend and aligns with the lowest points observed in September 2024, indicating a potential 32% decline from current trading levels. Such a significant drop would test the conviction of many investors, though some analysts maintain a flexible strategy to profit from both upward and downward movements.

Analyst Strategies Amid Bitcoin Volatility

Amidst the current volatility, the Finance Magnates analyst confirmed actively accumulating Bitcoin at levels around $75,000 and $78,000, arguing that waiting for absolute certainty of an uptrend might mean missing out on attractive entry prices. This approach combines a long-term bullish conviction with a readiness to adapt to market shifts.

The strategist also outlined a flexible positioning strategy, indicating a willingness to open short positions targeting $53,000 if the $68,000 support level is breached. This dual approach allows for potential profit generation even during declines, while maintaining a core belief in Bitcoin’s eventual return to new all-time highs. This framework emphasizes reacting appropriately to market signals at each critical price level rather than speculating.

The cryptocurrency market continues to exhibit a complex interplay of technical indicators, macroeconomic factors, and structural liquidity issues. Bitcoin’s ability to stabilize above key support levels following a significant correction, despite persistent external pressures, underscores its evolving role as a volatile yet resilient asset class, suggesting that market participants are keenly observing whether fundamental strength can override short-term market fragilities to drive a sustained recovery.