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Crypto Liquidations Hit $570M on January 29, 2026 — BTC Below $86K: Full Breakdown & Recovery Outlook

Published: January 30, 2026 | Updated: January 30, 2026 | Tapbit Market Volatility & On-Chain Desk

On January 29, 2026, cryptocurrency futures markets experienced one of the sharpest liquidation events of the year, with total liquidations exceeding $570 million in a single 24-hour window. Bitcoin briefly broke below $86,000 — its lowest level since mid-November 2025 — triggering over $268 million in hourly spikes at the peak of the sell-off. Approximately 90 of the top 100 tokens by market cap closed down an average of 4.6%, while overall crypto market capitalization shed roughly $120–140 billion intraday. The cascade was amplified by high leverage across centralized exchanges (Binance, Bybit, OKX), continued spot ETF outflows, macro risk-off sentiment, and weekend/Asia thin liquidity. Despite the severity, on-chain indicators show limited spot panic selling and early signs of dip accumulation by long-term holders. This article provides a complete timeline, platform-level breakdown, primary catalysts, technical levels, recovery signals, and actionable trading strategies on Tapbit for navigating the current fear phase.

Liquidation & Price Timeline – January 29, 2026

Time (UTC)BTC Price RangeLiquidation Spike (24h cumulative)Key Trigger / Market Note
00:00–04:00 Asia$88,950 → $87,200~$180MWeekend carry-over selling + thin liquidity
06:00–12:00 Asia/US overlap$87,200 → $85,800~$268M (peak hour)Leverage flush begins; stop cascades
14:00–18:00 US session$85,800 → $86,800 (low $85,912)~$570M totalMacro risk-off + ETF outflow headlines
20:00–00:00$86,800 → $87,500StabilizingDip-buyers emerge; short covering

The **$268 million** hourly spike during the Asia/US session overlap was the most violent single hour of the year to date, with Binance and Bybit accounting for ~65% of total liquidations.

Main Drivers Behind the $570M Liquidation Event

The liquidation cascade resulted from five interlocking pressures:

  1. Continued Spot ETF Outflows Bitcoin ETFs recorded ~$1.1B net weekly outflows (Jan 20–26 data), with momentum carrying into the following days. Institutional rebalancing after late-2025 highs removed consistent spot buying pressure.
  2. Fed “Higher-for-Longer” Reinforcement The January 28 FOMC hold at 3.50–3.75% (with only two dissents for a cut) reduced expectations of aggressive easing in H1 2026, increasing real-yield pressure on risk assets.
  3. Macro & Geopolitical Risk-Off Flows Renewed tariff threats (autos, pharma, lumber, semiconductors), US–NATO Greenland rhetoric, Middle East escalation, and China export curbs drove capital toward gold ($2,680+ ATH) and Treasuries.
  4. Stablecoin Liquidity Squeeze & Leverage Overhang USDC supply contraction (~$6.5B burned recently) reduced on-chain leverage capacity. High leverage across perps (average 20–50×) created a classic flush when stops were hit.
  5. Weekend/Asia Thin Liquidity Amplification Low weekend volume + Asian session overlap exaggerated moves; forced margin calls and cascading stops drove price lower until dip-buyers stepped in below $86k.

Platform Liquidation Breakdown – Binance, Bybit, OKX & Others

ExchangeEstimated Liquidations (Jan 29)Long vs Short RatioNotes
Binance~$210–240M68% Long / 32% ShortLargest single venue
Bybit~$140–170M71% Long / 29% ShortHeavy perp leverage exposure
OKX~$90–110M65% Long / 35% ShortSignificant Asia-driven volume
Other (dYdX, Hyperliquid, etc.)~$90–110MDecentralized venues saw lower but growing share
Total$570M+~69% Long liquidationsOverwhelmingly long-side flush

Technical Levels & Recovery Signals (BTC/USD)

Current ~$82,800–$83,500 (Jan 30 Asia close)

  • Immediate Support: $81,000–$81,500 (current low + high-volume capitulation zone)
  • Critical Support: $78,000–$80,000 (Nov 2025 swing low + 0.618 Fib retracement)
  • Next Resistance: $85,000–$86,000 (prior breakout cluster)
  • Recovery Target: $92,000–$94,000 (Fib 0.382 retracement from Dec high)
  • RSI (Daily): ~38 → deeply oversold, strong bounce potential
  • Volume Profile: Spike at $81k–$82k → capitulation; drying up on downside → exhaustion

Bullish confirmation: close above $85,000 + ETF inflow reversal. Bearish break below $81,000 risks deeper test toward $74k–$78k (next major support cluster).

Trading Strategies & Positioning on Tapbit

  1. Create your Tapbit account (0% maker fees)
  2. Deposit USDT or JPY via bank transfer / P2P
  3. Spot DCA accumulation: Buy BTC/USDT in tranches at $81,500 → $82,500 (capitulation zone)
  4. Futures rebound play: Long BTC/USDT perpetuals on reclaim of $85,000 (20–50x leverage, isolated margin)
  5. Macro hedge: Long XAU/USDT perpetuals if risk-off continues
  6. Risk control: Max 1–2% account risk per trade; trailing stops below $81,000

Conclusion & Near-Term Outlook

The $570 million+ liquidation event on January 29, 2026 — pushing Bitcoin to $81,102 — was a classic leverage flush amplified by Fed rate-hold reinforcement, $1.1B+ ETF outflows, stablecoin liquidity squeeze, and thin weekend/Asia trading conditions. The rapid rebound and stabilization near $82,800–$83,500 suggest selling exhaustion, with on-chain metrics showing continued long-term holder accumulation and declining exchange balances. The $81,000–$81,500 zone is now critical support; a decisive break above $85,000 would confirm recovery momentum.

Trade Bitcoin dips & liquidation volatility on Tapbit:

Disclaimer: Cryptocurrency trading involves significant risk of loss. Prices are highly volatile and can change rapidly. ETF flows and liquidation data 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.

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