Bitcoin’s Support Crumbles as Liquidations Hit: Is the Crypto Bull Run Out of Steam?

If you wanted a reminder that crypto is still the wild west, Bitcoin just handed it to you on a silver platter. The world’s largest digital asset broke below a key support level, triggering a cascade of liquidations and sending a chill through the entire market. At the last print, Bitcoin was trading at $76,601, down sharply after failing to hold the line that had supported its rally for months (newsbtc.com, 2026-02-01). The move wasn’t subtle—algos went haywire, and the dominoes started falling across gold, altcoins, and even the ever-resilient stablecoins.

This is not just a technical blip. Cross-asset markets are wobbling under liquidation pressure, and the mood has shifted from euphoria to caution in a matter of hours. The news wires are full of warning signs: Onyxcoin holders are panic selling, Story Protocol just shed 18%, and even institutional flows are showing signs of stress. Stablecoin dominance patterns, according to Blockonomi, suggest institutions are repositioning rather than running for the exits, but the tape doesn’t lie—risk is being repriced, and fast.

The context here is brutal. Bitcoin’s rally has been powered by institutional adoption, ETF flows, and a narrative that crypto is finally going mainstream. But the reality is that leverage is still king, and when the tide goes out, everyone scrambles for the lifeboats. This isn’t 2021, but it rhymes. The last time Bitcoin broke a major support, it took months to recover, and the pain spread across the entire crypto ecosystem. Gold is wobbling, equities are stalling, and the macro backdrop is anything but friendly.

Analysts are split. Some see this as a healthy correction, a chance to shake out the weak hands before the next leg higher. Others are calling for a deeper pullback, with targets as low as $68,000 if support doesn’t hold. The real story is leverage—too much of it, in too many places, with too little margin for error. The liquidation map is lighting up, and the risk of a cascade is real.

Strykr Watch

Bitcoin is now below its previous support at $78,000, with the next major level at $74,000. RSI is plunging toward oversold, but that’s cold comfort when the liquidation engines are running. The 200-day moving average is still rising, but price is threatening to break below it—a classic setup for a deeper correction. Watch for a bounce at $74,000, but if that fails, $68,000 is in play. On the upside, Bitcoin needs to reclaim $78,000 quickly to avoid a full-blown rout.

Altcoins are getting smoked, with Onyxcoin and Story Protocol leading the way lower. Stablecoin flows are mixed—some signs of institutional buying, but the overall tone is defensive. If Bitcoin can stabilize, expect a relief bounce, but the risk of further downside is high.

The risks are obvious. If Bitcoin fails to hold $74,000, the liquidation cascade will accelerate, and the entire crypto market will feel the pain. Regulatory headlines are lurking, and any sign of institutional outflows could trigger another wave of selling. The bull case? A swift recovery above $78,000, shorts get squeezed, and the rally resumes. But that’s not the way to bet right now.

Opportunities for traders are all about timing. Shorting weakness below $74,000 with a $78,000 stop makes sense, but don’t get greedy—this market can turn on a dime. If you’re brave, buying the flush into $68,000 with a tight stop could pay off, but size accordingly. The best trade? Stay nimble, keep your risk tight, and don’t fall in love with your position.

Strykr Take

Bitcoin’s support break is a wake-up call. Leverage is the enemy, and the market is repricing risk in real time. If you’re not watching the liquidation map, you’re trading blind. Stay tactical, keep your stops tight, and don’t try to be a hero. The next move will be fast and unforgiving. Strykr Pulse 48/100. Threat Level 4/5.