Crypto Futures Liquidations Hit $369M as Longs Dominate Amid Extreme Fear

VADODARA, February 2, 2026 — Over $369 million in cryptocurrency perpetual futures positions faced forced liquidations in the past 24 hours, with long positions dominating the losses across major assets. This daily crypto analysis reveals a market structure under severe stress, as Bitcoin (BTC) liquidations totaled $160 million (75.46% longs), Ethereum (ETH) hit $186 million (71.24% longs), and Solana (SOL) recorded $23.29 million (74.67% longs). According to on-chain data from derivatives tracking platforms, the skew toward long liquidations indicates a classic liquidity grab, where market makers flush out overleveraged retail positions to reset order books.

Investigation: The Liquidation Cascade Across Major Assets

Market structure suggests a coordinated sell-off triggered the liquidation cascade. Bitcoin's $160 million in liquidations saw three-quarters from long positions, pointing to a breakdown below key psychological support levels. Ethereum's higher total of $186 million reflects its sensitivity to leveraged trading, with 71.24% of losses from longs. Solana's $23.29 million in liquidations, though smaller, followed a similar pattern with 74.67% from longs. Consequently, this event created significant Fair Value Gaps (FVGs) on price charts, which institutional traders often target for mean reversion plays. Underlying this trend, perpetual futures funding rates turned negative across exchanges, exacerbating the pressure on leveraged longs.

Market Context & Historical Precedent

Historically, liquidation events of this magnitude precede volatile price swings. In contrast to the 2021 bull run, where liquidations were more balanced, the current dominance of long liquidations mirrors the March 2020 crash. That event saw $1 billion in liquidations within 24 hours, leading to a V-shaped recovery as institutions capitalized on distressed selling. , the current Extreme Fear sentiment, with a score of 14/100, aligns with past capitulation phases that often mark local bottoms. Related developments include Bitcoin's RSI breaking below 50, signaling potential bearish momentum, and large ETH positions facing liquidation threats amid market stress.

Technical Architecture & Price Action

Technical analysis reveals critical levels at play. Bitcoin's price action broke below its 50-day moving average at $78,000, triggering stop-loss orders and amplifying liquidations. The Relative Strength Index (RSI) dipped into oversold territory below 30, suggesting a potential bounce if buying pressure emerges. For Ethereum, key support at the Fibonacci 0.5 retracement level of $3,200 failed to hold, leading to a cascade into the $3,000 zone. Solana's chart shows a breakdown from an ascending wedge pattern, a classic bearish signal. Market structure suggests these moves invalidated previous bullish order blocks, creating new resistance zones that must be reclaimed for any recovery. According to Ethereum's official Pectra upgrade documentation, network improvements could mitigate future volatility by enhancing scalability, but short-term price action remains driven by leverage dynamics.

By The Numbers

Why It Matters

This liquidation event matters because it resets market leverage, reducing systemic risk from overextended positions. Institutional liquidity cycles often follow such flush-outs, as seen in past cycles where hedge funds entered after large liquidations to capture undervalued assets. Retail market structure, however, faces pressure, with many traders exiting positions at losses. Consequently, volume profile analysis shows increased selling volume at key levels, indicating capitulation. In the broader context, events like exchange suspensions due to regulatory actions add to the fear-driven sell-off, highlighting interconnected risks in the crypto ecosystem.

Expert Commentary

Market structure suggests this is a controlled demolition of weak hands. The dominance of long liquidations creates a Fair Value Gap that sophisticated players will exploit. We see parallels to the 2020 liquidation event, which preceded a 200% rally in Bitcoin over the next 12 months. However, traders must watch invalidation levels closely to avoid false breakouts.

— CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market outlook hinges on key technical levels. Historical cycles suggest that after such liquidations, prices often consolidate before a directional move. For Bitcoin, the Fibonacci 0.618 support at $74,200 acts as a critical zone; a hold there could spark a relief rally toward $82,000. Ethereum's recovery depends on reclaiming $3,200, while Solana must break above $150 to invalidate bearish structure. The 12-month institutional outlook remains cautiously optimistic, as on-chain data indicates accumulation by whales amid the fear, setting the stage for a potential rally in the 5-year horizon.

• Bullish Invalidation Level: Bitcoin must break and hold above $82,000 to confirm a trend reversal and target new highs.
• Bearish Invalidation Level: Bitcoin's support at $74,200 (Fibonacci 0.618) must hold to prevent a deeper correction toward $70,000.