Selling BTCUSD on rebound to $84,000 amid negative fundamentals

The Bitcoin market remains in a downtrend, with prices hovering around $78,500 following a recent slump to the $74,541 low.

The current technical setup on the daily chart confirms a broader bearish sentiment, offering a small chance of a near-term rebound. BTC is sitting below the middle Bollinger Band ($88,690) and has just broken through the lower limit of the channel at $76,840. This may be a signal of bears’ temporary exhaustion. Thus, a short-lived correction could take place.

The Stochastic Indicator (%K=22, %D=25) is about to knock at the door of oversold territory, confirming downward momentum. However, its lines are likely to converge near this zone soon, creating a favorable environment for bulls to wear the crown for a while.

In the meantime, the Chaikin Oscillator presents a mixed picture. Despite rising from extreme lows of late January, it is stuck in the negative zone, once again stating that sellers still hold the reins.

Fundamentally, cryptocurrencies are in hot water, primarily due to the selection of Kevin Warsh as the next US Federal Reserve (Fed) Chairman after Jerome Powell. Markets have expressed concerns over the new candidate’s hawkish policy stance and his historical advocacy for reducing the Fed’s balance sheet. Such an environment typically doesn’t promise well for speculative assets like Bitcoin.

Institutional demand is also showing signs of weakness. Spot BTC ETFs have seen outflows totaling $3 billion over the past two weeks. Notably, the average purchase price for these funds was approximately $87,830—well above current levels. This could mean that many large holders have recently suffered great losses, creating risks of a further selloff after Bitcoin’s modest attempts to recover.

Keep in mind the following trading strategy:

Sell BTCUSD during a rebound to $84,000 in anticipation of a short-term technical correction. Place Take profit at $75,000 and Stop loss at $87,500.

This forecast is valid from February 3 till February 10, 2026.