The post Bitcoin Sell-Off Deepens, Yet History Hints At a Price Bounce appeared on BitcoinEthereumNews.com.

Bitcoin has faced renewed selling pressure, with the price slipping below the $80,000 mark after a sharp pullback. The decline followed broader market weakness and rising risk aversion.  Although large wallet holders reacted defensively, several underlying bullish signals suggest Bitcoin may be positioning for a short-term recovery as selling pressure shows early signs of saturation. Sponsored Sponsored Bitcoin Large Holders Exit On-chain data indicates notable risk reduction among large Bitcoin holders throughout January. Wallets holding balances exceeding $100,000 and $1 million in BTC collectively declined by approximately 166,000 addresses over a two-week period. These cohorts typically represent institutional participants and high-net-worth investors, whose positioning often has an outsized impact on liquidity and directional price action. Such distribution phases tend to exacerbate downside volatility, as the withdrawal of large holders reduces passive buy-side support. However, history shows that these periods frequently coincide with late-stage corrections, where leveraged or weak hands are flushed out while longer-term participants gradually absorb supply. Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here. Bitcoin Addresses With Balance More Than $1 Million. Source: Glassnode What Does Bitcoin’s Past Say? Market sentiment remains decisively bearish across both social and quantitative indicators. Data from Santiment shows bearish crypto commentary has surged to its highest level since the November 21 market crash, reflecting elevated fear and capitulation among retail participants. Sponsored Sponsored From a contrarian perspective, sentiment compression at these extremes has historically aligned with local market troughs. Prior cycles suggest that when pessimism becomes one-sided, marginal sellers diminish, allowing price to stabilize and rebound—provided macro conditions and liquidity do not deteriorate further. This environment increases the probability of a tactical bounce rather than a continued impulsive downside. Bitcoin FUD Marks a Local Bottom. Source: Santiment BTC Price Could Bounce Back Bitcoin is currently trading near…

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Filed under: News - @ February 3, 2026 10:23 am