Crypto Futures Liquidations Hit $144M in One Hour Amid Extreme Fear

VADODARA, February 2, 2026 — Major cryptocurrency exchanges recorded $144 million in futures contract liquidations within a single hour, according to aggregated exchange data. This intense selling pressure forms part of a broader $659 million liquidation cascade over the past 24 hours. Market structure suggests a classic liquidity grab, coinciding with Bitcoin breaking below the $75,200 level. This daily crypto analysis examines the technical drivers and historical parallels to the 2021 mid-cycle correction.

Investigation: The Liquidation Cascade Mechanics

On-chain forensic platforms and exchange APIs confirm the liquidation event. The $144 million in one-hour liquidations primarily stemmed from long positions being forcibly closed. Consequently, this created a significant sell-side order block. Market analysts attribute the move to a break of a key psychological support level, triggering stop-loss orders en masse. The 24-hour total of $659 million indicates sustained deleveraging pressure across the derivatives market.

Market Context & Historical Precedent

Historically, concentrated liquidation events often precede short-term trend reversals or accelerations. Similar to the June 2021 correction, a rapid unwind of leveraged longs can flush out weak hands and reset market structure. In contrast, the current environment features a Crypto Fear & Greed Index reading of 14/100, signaling Extreme Fear. This sentiment extreme frequently correlates with local bottoms in past cycles, as documented by behavioral finance studies on the Federal Reserve's research on sentiment and asset prices.

Related developments in the current market cycle include heightened regulatory scrutiny and large institutional position stress, as seen in Trend Research's $1.43B ETH position facing liquidation pressure and South Korea's FSS deploying AI to target market manipulation.

Technical Architecture & Price Action

Bitcoin's price action broke below $75,200, creating a Fair Value Gap (FVG) on lower timeframes. The move invalidated the previous consolidation range, targeting liquidity below. Key technical levels now include immediate support at the $74,800 Fibonacci 0.618 retracement level from the recent swing high. Resistance consolidates near $77,000, a level recently broken as detailed in recent Bitcoin price action reports. The Relative Strength Index (RSI) on the 4-hour chart approaches oversold territory, suggesting potential for a counter-trend bounce if buying volume materializes.

By The Numbers

Why It Matters

This event matters because it directly impacts market liquidity and structure. Forced liquidations remove leverage from the system, potentially reducing volatility in the medium term. , they often create vacuum moves—rapid price swings that fill order imbalances. Institutional desks monitor these events to identify entry points for spot accumulation. Retail traders, however, frequently get caught on the wrong side, exacerbating the move. The current extreme fear sentiment, as seen in similar past liquidation events, often marks a sentiment capitulation phase.

Expert Commentary

"High-frequency liquidation clusters are a hallmark of modern crypto markets. They represent a mechanical cleansing of excessive leverage. Market structure suggests the $74,800 level now acts as a critical liquidity pool. A hold above it could signal a failed breakdown and short squeeze potential."

Market Outlook & Price Scenarios

Two primary technical scenarios emerge from the current market structure. The first involves a bounce from the $74,800 support, filling the recent FVG and targeting $77,000. The second scenario sees a breakdown below support, targeting the next significant liquidity zone near $72,500. Historical cycles suggest that extreme fear readings often precede relief rallies, but macro liquidity conditions remain the ultimate driver.

• Bullish Invalidation Level: $77,200. A sustained break above this level would invalidate the current bearish structure and suggest the liquidation event was a stop-hunt, potentially leading to a short squeeze.
• Bearish Invalidation Level: $74,800. A decisive close below this Fibonacci support on a 4-hour timeframe would confirm bearish continuation, targeting lower liquidity pools and likely triggering further long liquidations.

The 12-month institutional outlook remains cautiously optimistic, contingent on broader macroeconomic factors like central bank policy. However, short-term price discovery is now dominated by derivatives market mechanics and order flow analysis.