Bitcoin dropped to the lower end of its $90,000 to $109,588 range on Feb. 3 but saw an equally sharp rebound, climbing back to $99,700. This bounce signals strong demand at lower levels. The broader crypto market, which witnessed a brutal sell-off with some altcoins losing over 20% in a single day, has also staged a strong comeback. The initial dip was triggered by U.S. President Donald Trump’s announcement of tariffs on China, Canada, and Mexico, which sent shockwaves through risk assets, including crypto. However, Bitwise's head of alpha strategies, Jeff Park, believes Bitcoin’s long-term trajectory remains bullish.

Bitcoin broke below the 50-day simple moving average ($99,137) on Feb. 2 and dropped toward the lower end of its $109,588 to $90,000 range on Feb. 3. However, strong buying interest kicked in near $90,000, with bulls stepping in aggressively to defend the support zone. They are now attempting to push BTC back above key moving averages, signaling that the pair could continue consolidating within this range for some time.

If Bitcoin reclaims these levels, traders may look for a continuation of sideways action before the next major move. However, a strong rejection at the 20-day EMA ($101,161) would indicate that sellers are still active at higher levels, which could send BTC back toward the support zone. A breakdown below $85,000 would be the first major sign of a trend shift, potentially opening the door for deeper downside moves. Ethereum faced heavy selling after failing to break the downtrend line on Feb. 1, triggering a drop below the critical $2,850 support on Feb. 2.

The bearish momentum intensified on Feb. 3, driving ETH down to $2,125 before bulls stepped in to absorb the selling pressure. The long lower wick on the candlestick suggests dip-buying at lower levels, but the recovery is likely to encounter resistance at the 50% Fibonacci retracement level of $2,781 and again at the 61.8% level of $2,936. If ETH fails to break above these resistance zones, sellers may regain control, pushing the price back toward $2,111.

Bulls will need a breakout and close above the downtrend line to confirm a shift in momentum and signal the start of a potential uptrend.

Lastly please check out the advancement’s happening in the cryptocurrency world

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