Daily Crypto Analysis: $145M Futures Liquidation Signals Extreme Fear Capitulation

VADODARA, February 6, 2026 — Major cryptocurrency exchanges liquidated $145 million in leveraged futures positions within a single hour, according to real-time data from CoinGlass. This daily crypto analysis reveals a market structure under severe stress, with total 24-hour liquidations reaching $2.043 billion. Bitcoin currently trades at $71,323, down 6.92% in 24 hours, while the Crypto Fear & Greed Index registers Extreme Fear at 9/100.

Investigation: The Liquidation Cascade Mechanics

According to on-chain data from CoinGlass, the $145 million liquidation event occurred between 14:00 and 15:00 UTC. Market analysts attribute this to cascading margin calls as Bitcoin breached several critical support levels. The 24-hour total of $2.043 billion represents one of the largest liquidation clusters since the May 2022 Terra collapse. Per exchange liquidity maps, Binance and Bybit accounted for approximately 65% of the volume.

This event created a significant Fair Value Gap (FVG) on lower timeframes. Consequently, algorithmic trading systems exacerbated the move through stop-loss hunting. The liquidation profile shows $98 million in long positions wiped out versus $47 million in shorts, indicating predominantly bullish leverage unwinding.

Market Context & Historical Precedent

Historically, concentrated liquidation events often mark local bottoms during bull market corrections. Similar to the July 2021 correction, where $2.5 billion in liquidations preceded a 120% Bitcoin rally over four months. In contrast, the November 2022 FTX collapse saw liquidations exceeding $3 billion in 24 hours, leading to a prolonged bear market.

Underlying this trend is the current Extreme Fear sentiment. Market structure suggests this mirrors the January 2023 capitulation at $16,500 Bitcoin, which formed a generational low. The Federal Reserve's monetary policy stance, detailed in recent Federal Reserve meeting minutes, continues to influence macro liquidity conditions.

Related Developments:

• Bitcoin has previously demonstrated resilience by holding key levels despite similar sentiment extremes.
• Past analyses have examined structural risks following major price declines.
• Whale accumulation patterns often coincide with breaks above psychological resistance during fear periods.
• Large stablecoin transfers to exchanges can signal impending liquidity grabs by institutional players.

Technical Architecture & Price Action

Bitcoin's price action shows critical support at the $70,000 psychological level and the Fibonacci 0.618 retracement from the 2025 high at $68,500. The 200-day moving average provides dynamic support near $67,200. , the Relative Strength Index (RSI) on daily charts reads 38, approaching oversold territory but not yet at capitulation levels seen in March 2020.

On-chain forensic data confirms increased UTXO (Unspent Transaction Output) movement from older wallets, suggesting long-term holders are distributing. The Volume Profile Point of Control (VPOC) sits at $72,800, creating immediate resistance. Market structure suggests the liquidation event cleared a significant Order Block between $71,500 and $72,200, potentially creating a liquidity void for a retest.

By The Numbers

Why It Matters

This liquidation event matters because it represents a forced deleveraging of speculative positions. Institutional liquidity cycles typically enter accumulation phases after such volatility spikes. Retail market structure often breaks under these conditions, transferring assets to stronger hands. The Extreme Fear reading at 9/100 historically correlates with 12-month forward returns exceeding 150% for Bitcoin, based on backtested data from previous cycles.

Real-world evidence includes increased stablecoin inflows to exchanges, per Glassnode data. This suggests prepared capital waiting for structural lows. The impact extends to altcoins, with Ethereum's funding rates turning negative across perpetual swap markets. Consequently, the entire crypto derivatives complex resets risk parameters.

Expert Commentary

"The $145 million liquidation cluster represents a classic liquidity grab by market makers. When leveraged longs get flushed at key technical levels, it often creates the fuel for the next leg higher. However, the $2 billion 24-hour total indicates systemic stress that requires monitoring. Our models show the Gamma exposure from options markets remains skewed negative, suggesting continued volatility." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market structure suggests two primary technical scenarios based on current data. The bullish scenario requires reclaiming the $72,800 VPOC and holding above the 20-day EMA. The bearish scenario involves breaking the Fibonacci 0.786 level at $66,000, which would invalidate the higher-timeframe uptrend structure.

• Bullish Invalidation Level: $72,800 (Volume Profile Point of Control). A sustained break above this level with increasing spot volume would confirm the liquidation event as a bear trap and signal trend resumption.
• Bearish Invalidation Level: $66,000 (Fibonacci 0.786 retracement). A daily close below this level would indicate deeper correction potential toward the 200-week moving average near $58,000.

The 12-month institutional outlook remains constructive despite short-term volatility. Historical cycles suggest that Extreme Fear periods during bull markets present optimal risk-adjusted entry points. The 5-year horizon likely includes continued institutional adoption through ETF flows and potential regulatory clarity from bodies like the SEC.