On-chain data reveals the three major potential support levels for Bitcoin: Where is the market bottom?
Understanding these support levels can help investors identify potential turning points and make informed decisions.
### Key Support Levels
1. The first support level is around the $30,000 mark, which has historically acted as a strong floor during previous downturns.
2. The second support is near $20,000, close to the all-time high, which may serve as a psychological and technical barrier.
3. The third support is approximately $10,000, a critical long-term support zone that could indicate a major bottom if reached.
*Image showing Bitcoin's historical support levels and potential future support zones.*
By analyzing on-chain metrics such as wallet activity, transaction volume, and network hash rate, analysts can better assess the likelihood of these support levels holding.
Investors should monitor these key levels closely to gauge market sentiment and potential reversal points.

Bitcoin recently broke below key support during the market correction, temporarily losing the $71,000 level. As of February 6, 2026, on the Gate exchange, the latest BTC price is approximately $65,892.4, down 7.86% in the past 24 hours.

This decline has brought the 7-day drop to nearly 20%, plunging market sentiment into deep panic. However, on-chain data is revealing three potential key support zones that could serve as a foundation for market bottoming.

Market Status: Bitcoin Enters Defensive Bear Market Phase

As of February 6, 2026, Bitcoin on Gate is priced around $65,892.4, with a nearly 20% decline over the past 7 days, continuing the downward trend.

On the technical side, Bitcoin has for the first time since September 2023 fallen below the “True Market Mean.” This critical level of approximately $80,200 has shifted from support to resistance, indicating a significant deterioration in market structure.

Glassnode data further reveals market fragility. Over the past week, daily realized losses for Bitcoin surged to $240 million, far exceeding the 7-day moving average of $126 million. Such a sharp increase in losses typically signals panic selling.

On-chain activity shows a significant decline in market participation. Spot trading volume remains subdued, with the 30-day average trading volume well below the levels seen when the price fell from $98,000 to $72,000. The current decline has not been accompanied by effective volume expansion, highlighting a lack of confidence among market participants.

First Support Zone: Short-term Holder Cost Cluster at $66,900-$70,600

Analysis of on-chain UTXO Realized Price Distribution (URPD) shows a dense supply cluster between $66,900 and $70,600.

This is the cost basis for many recent Bitcoin buyers, forming a high-confidence zone for short-term holders. When prices approach these cost bases, these investors tend to hold strongly, providing a buffer for the market.

Below this zone, the $70,000-$80,000 range also shows clear signs of accumulation. This indicates some buyers are starting to position at these levels, willing to absorb market weakness.

Historically, regions with concentrated cost bases often act as “shock absorbers” for short-term selling pressure. When holders face losses, they tend to hold rather than sell, slowing down the decline and creating conditions for a short-term bottom.

Second Support Zone: Long-term Capital Entry Line Near $55,800

Glassnode reports that the “Realized Price” is around $55,800, representing the average cost basis of circulating supply.

This is not only a historically significant re-entry point for long-term capital but also a key boundary for market health. When prices approach or fall below this level, most long-term holders are in unrealized loss.

Historical data shows that in past market cycles, Bitcoin tends to revert to this mean after significant deviations from the realized price. Currently, Bitcoin’s price remains well above $55,800, indicating substantial buffer below.

It’s important to note that during extreme stress events (like LUNA or FTX collapses), prices have rapidly converged toward the realized price.

Third Support Zone: Around $51,500 for Macro Technical Support

Beyond on-chain data, macro technical analysis reveals another important support zone. Bitcoin is currently breaking a head-and-shoulders top pattern that has formed over several months, with a target downside of approximately $51,511.

If this pattern fully plays out, Bitcoin could face an additional decline of up to 37%. This macro technical analysis provides another framework for the long-term market bottom.

Key technical support levels below are at $68,072 and $65,360. If these levels are broken, it could trigger further liquidation waves, accelerating the move lower.

Market Bottoming Signals: What Conditions Must Be Met?

On-chain data indicates that for a true market bottom, several key conditions must be met simultaneously. Sustained selling pressure needs to be absorbed effectively, rather than the current “demand vacuum,” where selling lacks continuous buying support.

Currently, the US spot Bitcoin ETF has shifted from net buying to net selling, and Coinbase’s premium has been negative since October last year. This reflects weakening institutional demand in the US, whereas historically, sustained bull markets have been accompanied by strong US spot demand.

The market needs to see stablecoin supply resume growth. Currently, stablecoin market cap growth has turned negative for the first time since 2023, indicating decreasing liquidity flowing into crypto markets. Liquidity recovery is a necessary precondition for a market sentiment shift.

Historically, market bottoms are often associated with the unrealized loss indicator rising above 30%, and in extreme cases reaching 65-75%, as seen at the lows of 2018 and 2022 cycles. Currently, this indicator exceeds the long-term cycle average of 12%, but has not yet reached extreme historical levels.

Whale Activity: Can Large Holders’ Accumulation Reverse the Trend?

Despite widespread market pessimism, on-chain data shows large holders are actively accumulating Bitcoin. Addresses holding 10,000 to 100,000 BTC have accumulated over 50,000 BTC in just four days, worth over $3.58 billion at current prices.

This accumulation may reflect strategic positioning rather than short-term speculation. Historical data indicates that large holders tend to buy during periods of fear and significant corrections.

Whale accumulation could help absorb some selling pressure and stabilize prices. Notably, these activities mainly occurred after Bitcoin dropped below $75,000, suggesting “smart money” is viewing the current price zone as an attractive entry point.

However, large holder accumulation alone is insufficient to fully reverse the trend. Broader retail participation and institutional inflows are necessary for sustained recovery. Factors such as US spot Bitcoin ETF fund flows and corporate Bitcoin holdings will be key indicators to watch.

Key Support Levels for Bitcoin

Gate Perspective: Long-term Trends and Trading Strategies

Although the short-term market faces challenges, the long-term outlook remains promising. According to Gate’s price prediction model, Bitcoin’s average price in 2026 is projected around $458,077.08, with potential fluctuations between $361,880.89 and $499,304.02.

Looking further ahead, by 2031, Bitcoin’s price is expected to reach an average of $741,471.23, representing approximately 61% potential return from current levels.

For traders, the current environment calls for more cautious risk management. Given increased volatility, setting prudent stop-losses and controlling position sizes are especially important.

Glassnode’s report notes that any market rebound is likely corrective rather than a trend reversal. In this environment, dollar-cost averaging or gradually building positions at promising support levels may be a more prudent approach.

Future Outlook

Bitcoin’s price continues to fluctuate on Gate, with high uncertainty remaining. However, on-chain data clearly reveals key support zones below.

The market is currently below the first support zone of $66,900-$70,600, but large holders are actively accumulating, suggesting the short-term speculative sell-off may be nearing its end. Nonetheless, confirming a market bottom requires broader demand to return.

Further below, the $55,800 level remains a critical anchor for assessing long-term health, while the $51,500 area is an extreme scenario target indicated by technical analysis.

The market’s ultimate bottom may not be a precise price point but a price region. When institutional demand recovers, liquidity improves, and prices approach key on-chain support levels, true bottom signals will emerge.