Bitcoin (CRYPTO: BTC) has found fresh lows around $73,000, despite gold and silver rebounding 5% each on Tuesday.
The Precious Metals Recovery
Gold posted its largest single-day gain since November 2008, rebounding from a two-day collapse that saw prices plunge from record highs above $5,600 to as low as $4,405 on Monday.
Silver’s move was even more dramatic, jumping as high as 15% intraday after suffering a historic 27% crash on Friday followed by another 6% drop Monday.
The initial selloff started when President Trump nominated Kevin Warsh as the next Fed Chair—a pick seen as more hawkish than expected.
While investors still expect rate cuts, they anticipate tighter balance-sheet policy.
Adding pressure, the BLS delayed its January jobs report due to the government shutdown.
Geopolitical risks remain with US-Iran talks scheduled Friday and Ukraine preparing for renewed peace negotiations.
Bitcoin’s Failed Bounce
Bitcoin fell over 6% on the day to tap the $73,000 mark as Ethereum (CRYPTO: ETH) dived to $2,100.
Jake Ostrovskis, head of OTC at Wintermute, said options flows suggest traders expect only a short-lived bounce.
Heavy demand for near-term downside protection pushed short-dated volatility higher than longer-dated contracts—a setup called backwardation that typically signals more pain ahead.
Ostrovskis is waiting for volatility to cool and the options curve to normalize before calling a local bottom.
The Technical Damage
Bitcoin is testing critical $75,831 support at the lower Bollinger Band. A break below triggers selling toward $72,000-$68,000.
The Supertrend indicator sits at $87,551 in bearish mode.
Bulls need to reclaim this level to flip the trend, which appears unlikely given current momentum.
Immediate resistance appears at $80,000, then $84,000 where the descending trendline caps rallies.
The Broader Market Weakness
Crypto-related stocks amplified the pain. Strategy (NASDAQ:MSTR) made fresh lows, while Galaxy Digital (TSX:GLXY) dropped 12% following disappointing Q4 results. Coinbase (NASDAQ:COIN) also fell by similar amounts.
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