Bitcoin Sells Off as Support Breaks: Risk-Off Flows and Liquidations Roil Crypto Markets

If you blinked, you missed the latest Bitcoin sell-off. In a market where weekends are supposed to be dead zones, crypto decided to throw a party for the bears. As of February 1, 2026, at 23:15 UTC, Bitcoin has cracked below a key support, trading at $76,601, according to news.bitcoin.com. The move was not subtle. Algos went haywire after a wave of liquidations, and the market’s risk-off reflex was triggered by a cocktail of geopolitical jitters, cross-asset wobbles, and a sudden spike in stablecoin dominance that looked less like 'institutional repositioning' and more like a stampede for the exits.

The facts are ugly. Over the last 24 hours, Bitcoin has dropped through levels that had been supporting the entire rally for months. Funding rates flipped negative, and open interest collapsed as forced sellers dumped into thin liquidity. Ethereum, not to be outdone, entered what AMBCrypto called 'FTX-era stress.' Liquidations swept across majors and altcoins alike. The carnage wasn’t limited to crypto: silver also got hammered, and stock futures followed suit. CNBC’s live update at 18:07 UTC flagged the domino effect, with traders openly questioning the staying power of the AI trade and the wisdom of risk-on positioning in a market that suddenly feels allergic to leverage.

Context matters. This is not just another garden-variety dip. The last time we saw this kind of synchronized deleveraging was during the FTX collapse, and before that, the Terra/Luna implosion. But unlike those episodes, the macro backdrop is less forgiving. Treasury issuance is draining liquidity from risk assets, as Seeking Alpha reported, with the Treasury General Account sucking $64.3 billion out of the system. The S&P 500 closed January up 1.4%, but momentum is waning. Geopolitical shocks are now a bigger risk for stocks than earnings or the economy, according to MarketWatch. The cross-asset pain trade is back, and crypto is at the bleeding edge.

The real story here is the structural fragility exposed by this sell-off. Bitcoin’s rally has been built on leverage, ETF flows, and a narrative that institutions are here to stay. But when the tide goes out, it turns out a lot of those institutions are just faster at hitting the sell button. Stablecoin dominance patterns, as Blockonomi notes, suggest this is not a full-blown risk-off panic—yet. But the divergence in exchange flows and the speed of the move hint at more pain ahead if support doesn’t hold. The technicals are not your friend right now. Bitcoin has broken below a previous low that had been the backbone of the rally. Analysts are already signaling lower levels ahead. Onyxcoin holders panicked, but technical charts show breakout potential—if you believe in fairy tales. For now, the path of least resistance is down.

Strykr Watch

The technicals are a minefield. Bitcoin’s key support at $77,000 has been breached, and the next real support is lurking near $74,500. Resistance sits at $80,000, which now looks like a distant dream unless buyers step in with conviction. RSI is oversold but not capitulation-level. Funding rates are negative, which could set up a short squeeze, but only if spot buyers materialize. Ethereum is in structural stress, with funding and open interest both flashing red. Watch for cascading liquidations if Bitcoin drops below $74,500. On the upside, a reclaim of $80,000 would force shorts to cover, but that’s a big 'if.'

The risks are obvious and immediate. If Bitcoin fails to hold $74,500, the next stop is $70,000, and there’s not much in the way of volume support until then. A hawkish surprise from the Fed or a further spike in Treasury yields could trigger another wave of selling. ETF outflows are a looming risk. If institutional flows reverse, the market could see a repeat of last year’s Q2 wipeout. And don’t forget about regulatory risk—rumors of insider trading and exchange shenanigans are swirling again, with Justin Sun’s ex dropping receipts on Binance account dumps. If trust erodes further, expect more forced selling.

But chaos breeds opportunity. For the brave (or the reckless), this is a trader’s market. Longs can look for entries near $74,500 with tight stops below $73,000, targeting a bounce to $78,000 or even $80,000 if shorts get squeezed. Short sellers have the wind at their backs, but chasing here is dangerous—wait for a failed reclaim of $77,000 to re-enter. Ethereum could see a relief rally if funding normalizes, but the structural deleveraging is not over. Stablecoin inflows could signal a bottom, so watch exchange flows closely. For those with patience, scaling into spot on further weakness could pay off, but size accordingly and don’t get greedy.

Strykr Take

This is not the time to play hero. The market is punishing leverage and rewarding discipline. The path of least resistance is lower until proven otherwise. If you’re trading, keep it tight and nimble. If you’re investing, let the dust settle—there will be better entries. The real opportunity will come when forced sellers are exhausted and the market stops rewarding panic. Until then, respect the risk and don’t try to catch falling knives.

Date published: 2026-02-01 23:15 UTC