Long Positions Dominate $478M Crypto Liquidation Event Amid Extreme Fear

VADODARA, January 26, 2026 — Forced liquidations in cryptocurrency perpetual futures markets reached $478 million over 24 hours. Long positions dominated the carnage. This daily crypto analysis reveals a market structure under severe stress. Bitcoin long positions accounted for 93.88% of its $196 million liquidations. Ethereum followed with 92.9% of $219 million. Solana saw longs make up 96.6% of $63.04 million.

Investigation: The Liquidation Cascade

According to Coinness data, the liquidation event unfolded between January 25-26, 2026. Perpetual futures markets triggered massive forced closures. Bitcoin's $196 million in liquidations saw longs bear 93.88% of the pain. Ethereum's $219 million followed a similar pattern. Solana's $63.04 million liquidation showed near-total long dominance at 96.6%.

Market structure suggests a classic liquidity grab. Leveraged bulls faced margin calls as prices declined. This created a cascading effect. Order flow data indicates concentrated selling pressure. The event highlights excessive speculative positioning.

Market Context & Historical Precedent

Historically, such skewed long liquidations signal capitulation events. They often precede short-term bottoms. The 2021 cycle saw similar patterns before major rallies. In contrast, the current event occurs amid broader market weakness.

Underlying this trend is the Global Crypto Fear & Greed Index at 20/100. This indicates Extreme Fear sentiment. Market psychology has turned decisively negative. Consequently, leveraged positions became vulnerable to minor price declines.

Related developments include the 60% drop in Foundry USA's hashrate due to winter storms. Network stress compounds market uncertainty. , a dormant Ethereum whale moved $145 million to Gemini. This suggests potential selling pressure.

Technical Architecture & Price Action

Bitcoin currently trades at $87,440, down 1.75% in 24 hours. Critical support sits at the Fibonacci 0.618 retracement level of $85,200. This level aligns with the 50-day moving average. A break below would invalidate the current bullish structure.

Ethereum shows similar weakness. Its liquidation cluster created a significant Fair Value Gap (FVG) on lower timeframes. This gap must be filled for healthy price discovery. Resistance now forms at the $2,900 order block from last week.

On-chain data from Glassnode indicates rising exchange inflows. This suggests increased selling pressure. The UTXO (Unspent Transaction Output) age bands show older coins moving. Historically, this precedes volatility.

By The Numbers

Why It Matters

This liquidation event matters for portfolio risk management. It exposes over-leverage in crypto derivatives. Institutional liquidity cycles typically follow such cleansings. Retail traders often panic-sell at these extremes.

Market structure now shows clear weak hands exiting. This creates potential for a relief rally. However, sustained recovery requires institutional buying. The Federal Reserve's monetary policy, detailed on FederalReserve.gov, remains a key macro driver. Interest rate decisions directly impact risk asset valuations.

Expert Commentary

"The extreme skew toward long liquidations indicates a market flush. This often resets leverage to healthier levels. However, the Fear & Greed Index at 20 suggests sentiment remains fragile. Traders should watch for a volatility contraction before assuming trend reversal." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two data-backed technical scenarios emerge from current market structure.

• Bullish Invalidation Level: $92,500. Bitcoin must reclaim this level to confirm any sustainable uptrend. This represents the previous support-turned-resistance zone.
• Bearish Invalidation Level: $85,200. This Fibonacci 0.618 support must hold to prevent a deeper correction toward $80,000.

The 12-month institutional outlook remains cautiously optimistic. Historical cycles suggest such liquidation events often mark intermediate lows. However, the 5-year horizon depends on broader adoption and regulatory clarity. EIP-4844 implementation for Ethereum could reduce transaction costs, potentially boosting network activity.