Bitcoin (BTC) continued its sharp decline on Saturday, January 31, 2026, after the brutal sell-off led to the initiation of a wave of forced liquidations in the crypto derivatives market. The move also reflects the defensive risk-off sentiment prevailing in the market.
Currently, the price of Bitcoin is trading at $77,882 with a decline of 7.53% over the last 24 hours, as seen on the data from CoinMarketCap.
Trading activity also declined during the sell-off, with 24-hour volume reaching $68 billion and BTC’s market capitalization slipped to approximately $1.56 trillion.
Source: CoinMarketcap
The decline comes after a nearly 13% drop in the past week, as macro uncertainties and risk deleveraging prompted the sell-off in the digital asset space.
Bitcoin Sell-Off Triggers Heavy Liquidations
The market commentary by Daan Crypto Trades described this move as a “pretty brutal weekend sell-off” where high-leverage long positions were liquidated aggressively.
In a weekend market commentary, this trader pointed out that a large whale position was liquidated during this decline. This resulted in an estimated $100 million loss in daily profit and loss, thus adding to the selling pressure on large-cap crypto assets.
The liquidation data suggests that approximately $2.41 billion in long positions were liquidated over the past 24 hours. This is a signal that one of the most severe deleveraging events has been witnessed in recent weeks.
Also Read: Bitcoin ETFs Hit by $1.82B Shock as Investors Panic
Open Interest Collapse Signals Deleveraging Phase
Furthermore, the bearish case is reinforced by a significant decrease in aggregated open interest on major exchanges, as identified by GL Crypto. This is a clear indicator of forced closures rather than liquidations.
This is a clear indicator of a market-wide deleveraging cycle, which is common during periods of high volatility.
Source: GL Crypto X post
Funding rates on all Bitcoin perpetual futures products are now firmly negative, which could be a sign that longs got squeezed out of the market, while the shorts entered the market at lower levels.
Negative funding can be a precursor to a relief rally, but it can also be a reflection of weak sentiment and a lack of confidence in a potential rally.
$74K Emerges as Key Technical Battleground
From a technical point of view, the focus has now turned to the $74,000 price level, which was a major resistance area in 2024 but has now turned to a support area as a result of the April 2025 breakout.
Source: Daan Crypto Trades X Post
A significant move below this level will indicate a loss of major support, which could lead to a further decline towards lower liquidity areas.
GL Crypto has highlighted how, despite the fact that the downtrend is still being driven by selling pressure, there could be a short-term consolidation move as a result of a decrease in liquidation pressure.
However, without a move to reclaim major resistance areas above $80,000, it will likely remain a corrective move and not a sign of a trend change.
Also Read: Bitcoin Crashes Below $79K As $650M Liquidations Rock Crypto Market
