Daily Crypto Analysis: $100M Futures Liquidations Signal Extreme Fear Market Structure

VADODARA, February 2, 2026 — Major cryptocurrency exchanges executed over $100 million in futures contract liquidations within a single hour, according to aggregated exchange data. This daily crypto analysis reveals a concentrated deleveraging event that coincides with Bitcoin's price decline to $76,471, down 2.15% in 24 hours. The broader 24-hour liquidation total reached $478 million, indicating sustained selling pressure across leveraged positions.

Investigation: The One-Hour Liquidity Squeeze

Exchange order books processed $100 million in forced liquidations between approximately 10:00 and 11:00 UTC on February 2, 2026. This event represents a classic liquidity grab, where rapid price movement triggers margin calls on over-leveraged positions. Consequently, cascading liquidations amplified the sell-off, creating a self-reinforcing cycle. Market structure suggests this was not an isolated incident but part of a larger $478 million 24-hour unwind. The data, sourced from major derivatives platforms, points to a market flush of speculative excess.

Market Context & Historical Precedent

Historically, hourly liquidation spikes above $100 million often precede short-term volatility compression. In contrast to the 2021 bull run, where liquidations frequently exceeded $1 billion daily, the current scale indicates a more targeted correction. Underlying this trend is the Crypto Fear & Greed Index reading of 14/100, classifying sentiment as Extreme Fear. This aligns with past cycles where similar index levels marked local bottoms before consolidation phases. For deeper context on market sentiment drivers, review our analysis on Bitcoin's price action amid extreme fear.

Technical Architecture & Price Action

Bitcoin's price action broke below the $77,000 psychological support, testing the $76,471 level. On-chain data indicates a Fair Value Gap (FVG) now exists between $77,500 and $78,200, which price may revisit to fill. The 50-day exponential moving average at $75,800 provides near-term dynamic support. , the Relative Strength Index (RSI) on the 4-hour chart dipped to 32, approaching oversold territory but not yet confirming a reversal. Market analysts note that a break below the Fibonacci 0.618 support at $75,200 would invalidate the current bullish higher-low structure.

By The Numbers

Why It Matters

This liquidation event matters because it exposes underlying leverage imbalances. Institutional liquidity cycles often use such squeezes to accumulate at lower prices, while retail traders face margin calls. The $100 million hourly flush acts as a pressure release valve, potentially resetting the market for the next move. Real-world evidence includes reduced open interest post-liquidations, which typically lowers volatility. For a broader perspective on liquidation dynamics, see our report on the $1.3 billion liquidity squeeze.

Expert Commentary

"The $100 million liquidation cluster is a textbook example of a market clearing over-leveraged positions. It doesn't necessarily indicate a trend reversal but rather a healthy correction within a larger cycle. The key is whether support at $75,200 holds on a weekly close." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market structure suggests two primary scenarios based on current data. First, a bullish scenario where price holds above $75,200 and rallies to fill the FVG near $78,200. Second, a bearish scenario where support breaks, targeting the next Order Block at $73,500. The 12-month institutional outlook remains cautiously optimistic, as liquidations often precede accumulation phases in bull markets.

• Bullish Invalidation Level: $78,500. A break above this resistance would confirm the correction is over and target new highs.
• Bearish Invalidation Level: $75,200. A sustained break below this Fibonacci support invalidates the current uptrend structure.