05.02.202609:25 Forex Analysis & Reviews: BTC tumbles to around $70,000 after fresh wave of selling

Bitcoin fell to roughly $70,000 following remarks by US Treasury Secretary Scott Bessent. The official said that while the government will retain confiscated BTC, it will not step in to buy the current dip in Bitcoin nor compel banks to purchase the asset if the market falls further.

A Trump decree explicitly limits a strategic BTC reserve to confiscated coins and to budget-neutral schemes, so market participants should not expect active government support.

Although the Treasury secretary's comments were unlikely to have been the sole direct cause of the selloff, they did spark panic selling among retail investors. Large holders, however, likely used the weakness to increase positions at more attractive prices. It is a common tactic in a volatile crypto market.

The long-term fallout from such official statements remains unclear. On one hand, an absence of active US government support could undermine confidence in Bitcoin and slow wider adoption. On the other hand, it strengthens the argument of decentralization proponents who maintain that Bitcoin must remain independent of state influence.

In the coming weeks and months, markets will watch closely for further government statements and for moves by major institutional investors. Recall that President Trump has been a vocal supporter of cryptocurrencies, and his comments on the subject have historically provided meaningful market support. Progress on crypto regulation, notably the CLARITY bill under discussion among lawmakers, will also be a critical factor.

Despite the current volatility, many analysts remain optimistic about Bitcoin's long-term prospects. They point to limited supply, growing institutional interest, and the asset's potential role both as a medium of exchange and as a store of value.

Trading recommendations:

From a technical perspective, BTC buyers are targeting a recovery to $72,100, which would open a path to $74,600 and then to $77,400. The further target is near $80,100. A breakout of that level would indicate attempts to restore a bullish market. On the downside, buyers are expected at $68,900. A break below that area could quickly push BTC toward $65,700, with a further downside target near $62,400.

As for Ethereum, a clear consolidation above $2,159 would open a route to $2,316. The further target is near $2,466. Surpassing that level would strengthen bullish sentiment and renew buyer interest. If ETH falls, buyers are anticipated at $2,017. A move below that zone could rapidly send ETH down to about $1,891, with a further downside target near $1,768.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

A crossover, or a price test of moving averages, typically either halts the move or sparks fresh market momentum.