Crypto Futures Liquidations Hit $176M as Bitcoin Tests $88k Support

VADODARA, January 29, 2026 — Cryptocurrency perpetual futures markets experienced a massive leverage flush over the past 24 hours. Forced liquidations totaled $176 million across major assets. This daily crypto analysis reveals Bitcoin long positions dominated the carnage. Market structure suggests a classic liquidity grab.

Investigation: The Liquidation Cascade

According to Coinness data, Bitcoin (BTC) saw $123 million in forced liquidations. Long positions accounted for 80.68%. Ethereum (ETH) followed with $42.85 million liquidated. Longs made up 64.94%. Gold-pegged XAU witnessed $10.83 million in liquidations. Short positions dominated at 85.21%.

The data indicates a sharp move against leveraged bulls. Consequently, this triggered a cascade of margin calls. Market analysts attribute the pressure to a technical breakdown below key moving averages. On-chain forensic data confirms whale selling intensified the slide.

Market Context & Historical Precedent

Historically, liquidation events of this magnitude precede volatility spikes. The 2021 cycle saw similar patterns before major corrections. In contrast, the current event lacks a single macro catalyst. Underlying this trend is excessive leverage built during the recent rally.

, regulatory uncertainty persists. For instance, unregistered crypto apps remain on Google Play in South Korea. This creates compliance risks. Additionally, FOMC meetings act as leverage catalysts, not directional drivers. Market structure remains fragile.

Technical Architecture & Price Action

Bitcoin currently trades at $88,022. The 24-hour trend shows a -1.15% decline. Critical support sits at the Fibonacci 0.618 retracement level of $85,500. This level aligns with the 200-day moving average. A break below invalidates the bullish structure.

Resistance forms at $92,000, a previous order block. The Relative Strength Index (RSI) reads 38, indicating oversold conditions. However, volume profile shows weak buying interest. Ethereum's price action mirrors Bitcoin, with support at $4,200. The EIP-4844 upgrade failed to provide bullish momentum.

By The Numbers

Why It Matters

Liquidations of this scale drain market liquidity. They create Fair Value Gaps (FVGs) that algorithms exploit. Institutional players often front-run these moves. Retail traders face margin calls, amplifying the sell-off.

, the event highlights systemic leverage risks. Perpetual futures funding rates turned negative. This signals bearish sentiment. According to Ethereum's official documentation, high leverage can destabilize DeFi protocols. The impact extends beyond spot markets.

Expert Commentary

Market structure suggests this is a controlled deleveraging event. The high percentage of long liquidations indicates over-optimistic positioning. We monitor the $85,500 Fibonacci level as a critical inflection point. A break lower could trigger a gamma squeeze on short-dated options.

— CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two data-backed scenarios emerge from current market structure.

• Bullish Invalidation Level: $92,000. A break above this resistance confirms trend reversal. It would fill the recent FVG and target $95,000.
• Bearish Invalidation Level: $85,500. This Fibonacci support must hold to maintain bullish structure. A break below targets $82,000, the next major order block.

The 12-month institutional outlook remains cautious. Historical cycles suggest liquidation events often mark local bottoms. However, sustained high leverage could prolong volatility. The 5-year horizon depends on macroeconomic policy shifts.