Bitcoin Bottom Debate: $70,000 or $50,000?

TradingKey - Where is the Bitcoin bottom? Can you buy the dip now? Cathie Wood suggests swapping gold for Bitcoin.

On Tuesday (February 3), panic in the crypto market eased as Bitcoin ( BTC) prices rebounded about 4%, approaching $80,000, with the current price at $78,430. Yesterday, Bitcoin's price plummeted to $74,000, hitting a new low since April 2025, while the Fear & Greed Index fell to 15, indicating extreme fear.

Bitcoin price chart, source: CoinMarketCap

As usual, after a major crash, investors are asking—where is the bottom? Is it time to buy the dip? Currently, some views suggest Bitcoin remains weak and could potentially test new lows, with $55,000-$70,000 likely being the true bottom.

Alex Thorn, Head of Research at Galaxy, believes Bitcoin could drop to $70,000 or even test the $56,000-$58,000 range, citing on-chain data, technical weakness at key price levels, and macro uncertainties favoring the bears. Analysts at Compass Point also expect further weakness, with a potential bottom between $60,000 and $68,000, and a worst-case scenario drop to $55,000.

From a technical analysis perspective, Bitcoin is currently finding support at $75,000 and is expected to continue its short-term rebound. If it breaks below this level, the next support sits at $55,000, which aligns with a price range that saw eight months of consolidation in 2024—a level widely considered consensus support. Bitcoin price chart, source: TradingView

Despite persistent market panic, capital has already begun flowing into Bitcoin or is about to. Specifically, U.S. spot Bitcoin ETFs saw inflows of $561 million yesterday. Binance ( BNB) exchange's SAFU fund announced it will gradually purchase $1 billion worth of Bitcoin over the next 30 days. Tron ( TRX) founder Justin Sun also stated he is increasing his Bitcoin holdings by $50 million to $100 million.

U.S. spot Bitcoin ETF inflows, source: CoinGlass

Additionally, Bitwise CEO Hunter Horsley claimed to have added to his Bitcoin position again, stating he "couldn't resist a cost basis below $80,000." Cathie Wood is even more aggressive, suggesting a rotation from gold ( XAUUSD) into Bitcoin. On a podcast called "The Rundown," Cathie Wood stated, "Gold has priced in the worst-case scenario and is in a stage of irrational exuberance, likely due for a correction. But Bitcoin is different; it is still in its emerging phase."