Published & Updated: January 28, 2026
Bitcoin suffered its sharpest correction of 2026 over the weekend, plunging to an intraday low of $86,400 before rebounding and stabilizing near $88,950 as of Tuesday Asian session (Jan 28). The move came alongside the largest weekly net outflows from U.S. spot Bitcoin ETFs since February 2025 — totaling approximately $1.3 billion — driven by a combination of profit-taking after late-2025 highs, renewed macro caution (tariff threats, delayed Fed rate-cut expectations), and broader risk-off sentiment. Despite the dip, on-chain metrics show no widespread panic selling, with exchange balances continuing to decline and long-term holder accumulation remaining strong. This article provides a detailed timeline of the plunge, key drivers behind the $86,400 low, ETF flow breakdown, technical levels to monitor, recovery catalysts to watch, and actionable trading strategies on Tapbit for navigating the current consolidation phase in late January 2026.
Bitcoin Weekend Plunge Timeline – Key Price Levels
| Date / Time (UTC) | Price Level | Change | Key Event / Context |
|---|---|---|---|
| Jan 25 (Sat) evening | ~$92,200 | — | Pre-weekend high; late-2025 momentum fading |
| Jan 26 (Sun) Asia | $89,800 → $87,200 | -2.9% | Initial risk-off selling begins |
| Jan 26 (Sun) US close | $86,400 (low) | -6.3% from weekend open | 2026 low hit; heavy liquidation cascade |
| Jan 27 (Mon) recovery | $86,400 → $89,100 | +3.1% | Dip-buying & short covering |
| Jan 28 (Tue) current | ~$88,950 | +0.9% intraday | Stabilization zone; ETF inflow reversal signals |
The weekend drop represented Bitcoin’s deepest correction since the late-2025 peak near $126,000 (~31% drawdown), but the swift rebound above $88,000 prevented a deeper capitulation.
$1.3B Bitcoin ETF Outflows – Largest Weekly Since Feb 2025
U.S. spot Bitcoin ETFs recorded significant redemptions during the correction week:
- Total weekly net outflows: **$1.3 billion** (largest since February 2025)
- Key sessions: $840M inflows earlier in January reversed by heavy redemptions
- Leading funds: BlackRock IBIT and Grayscale GBTC accounted for the majority
- Context: Tactical institutional rebalancing rather than structural exit
Despite outflows, Monday saw early signs of reversal in some products, aligning with the price stabilization above $88,000.
Macro & Sentiment Drivers Behind the $86,400 Low
The plunge was triggered by a confluence of factors:
- ETF outflow momentum: Cumulative selling pressure from institutional redemptions
- Macro risk-off tone: Renewed US–NATO Greenland rhetoric, tariff threats, and delayed Fed rate-cut expectations
- Liquidation cascade: Over $1B in leveraged positions flushed out during Sunday’s drop
- Stablecoin contraction: $2.24B decline signals reduced on-chain liquidity
- Altcoin rotation pause: Capital shifted selectively into infrastructure plays while majors corrected
The Crypto Fear & Greed Index dipped to **24** (extreme fear) before recovering to **26**, indicating the most acute panic phase may have passed.
Technical Levels & Recovery Signals to Watch
BTC/USD – Current ~$88,950
- Immediate Support: $87,500–$88,000 (prior breakout cluster)
- Critical Support: $86,000–$86,400 (2026 low; strong psychological base)
- Next Resistance: $90,000–$91,000 (round number + 50-day EMA)
- Bull Target: $94,000–$96,000 (Fib 0.618 retracement from Dec high)
- RSI (Daily): ~42 → oversold, room for upside
- Volume: Drying up on red candles → potential exhaustion
Key recovery signal: Sustained trade above $90,000 + ETF inflow continuation would confirm the $86,400 low as the cycle bottom.
Trading Strategies & Positioning on Tapbit
- Create your Tapbit account (0% maker fees)
- Deposit USDT or JPY via bank transfer / P2P
- Spot DCA accumulation: Buy BTC/USDT on dips toward $87,500–$88,000 (strong support zone)
- Futures rebound play: Long BTC/USDT perpetuals on reclaim of $90,000 (20–50x leverage, isolated margin)
- Macro hedge: Long XAU/USDT perpetuals if risk-off intensifies
- Risk control: Max 1–2% account risk per trade; trailing stops below $86,000
Conclusion & Near-Term Outlook
Bitcoin’s weekend plunge to $86,400 — the lowest level of 2026 — was driven by $1.3 billion in spot ETF outflows (largest weekly since February 2025), macro caution, and liquidation pressure, but the swift rebound and stabilization near $88,950 suggest the most acute panic phase may be over. On-chain metrics show continued long-term holder accumulation and declining exchange balances, while ETF inflow reversal provides the first meaningful counter-signal. The $86,000–$88,000 zone remains critical support; a decisive break above $90,000 would confirm recovery momentum. Monitor ETF flow follow-through, Fed rhetoric, and volume behavior above $90,000 for the next directional catalyst — the institutional bid floor appears to be forming.
Trade Bitcoin dips & recovery on Tapbit:
- Sign Up on Tapbit (0% spot trading fees)
- Login & Deposit
- Live BTC/USDT Spot & Perpetual Charts
Disclaimer: Cryptocurrency trading involves significant risk of loss. Prices are highly volatile and can change rapidly. ETF flows are estimates and subject to revision. This article is for informational purposes only and does not constitute investment advice. Always conduct your own research (DYOR) and never invest more than you can afford to lose completely.
