Bitcoin Falls Below $88K, $135M in Longs Liquidated as Crypto Sentiment Turns Fearful
Bitcoin slipped below $88,000 on Jan. 25, erasing roughly $135 million in long positions within an hour amid renewed selling across crypto markets. BTC traded near $87,743, down about 1.5% on the day and ~8% over the week, per CoinGecko. The Fear & Greed Index fell to 25, signaling a shift to fearful sentiment. Analysts attribute the downturn to a false breakout of the $95,938 resistance; immediate support sits near $86,561 with downside targets as low as $80,000 if no reversal occurs. The broader crypto market cap fell to roughly $3 trillion. Major altcoins also declined: ETH and BNB down >2% in 24 hours; SOL and XRP down >3%. Institutional interest persists — Michael Saylor’s Strategy holds 709,715 BTC (worth >$62bn) and hinted at further purchases. Key takeaways for traders: elevated volatility and liquidation risk, watch $86.5K support and $95.9K resistance levels, and adjust leverage and stop-losses given heightened market fear.
Bearish
The article describes a fresh price decline in Bitcoin that triggered $135M of long liquidations and pushed market sentiment into ’fear’ (Fear & Greed Index 25). These factors point to near-term downside pressure. Technicals cited include a failed breakout at $95,938 and immediate support at $86,561 with downside risk to $80,000 — classic signals for bearish momentum. The decline is broad-based, affecting major altcoins (ETH, BNB, SOL, XRP), and reduced total market cap to about $3 trillion, indicating correlated selling rather than isolated weakness. Historically, similar rapid drops with concentrated long liquidations (e.g., prior BTC $X corrections) amplified volatility and produced short-term oversold conditions before consolidation; however, they often prolong corrective phases if institutional flows remain neutral or if no clear macro catalyst reverses sentiment. For traders: expect elevated intraday volatility, increased risk of further liquidation cascades if BTC breaks $86.5K, and potential short-term bounce opportunities on oversold readings. Longer term, institutional accumulation (Strategy’s large BTC holdings and hinted purchases) can provide a supportive bid, but that does not preclude continued corrective movement until technical structure and sentiment improve.