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."