Bitcoin extended its sharp decline, sliding in the $63,000 range as a wave of forced liquidations swept through the crypto market, amplifying downside pressure and pushing sentiment deeper into extreme fear.
Key takeaways:
Bitcoin has dropped toward the $63,000–$65,000 zone amid heavy selling
Crypto liquidations reached nearly $2 billion in the past 24 hours
The majority of liquidations came from long positions, signaling forced deleveraging
Market sentiment remains at extreme fear, with momentum indicators oversold
The sell-off has unfolded rapidly, marking one of the most aggressive deleveraging events seen in recent months.
The broader market context highlights the severity of the move. Total crypto market capitalization has fallen to roughly $2.16 trillion, while the average crypto relative strength index has dropped below 30, reinforcing the oversold narrative. Bitcoin has underperformed on a short-term basis, recording steep losses across the daily and weekly timeframes as volatility surged. At the time of writing BTC is trading at $63,280
Here’s what’s happening across the rest of the market:
Ethereum has dropped more aggressively than Bitcoin, with weekly losses exceeding 30%, reflecting higher sensitivity to forced liquidations and risk-off flows.
Solana has seen some of the steepest drawdowns among large-cap assets, falling over 30% on the week, as leveraged positioning unwound rapidly.
XRP and BNB are also deep in the red, both posting double-digit weekly losses as liquidity thins and sellers dominate.
Smaller altcoins are faring worst, with many experiencing capitulation-style moves as liquidity evaporates and stop-losses cascade.
Liquidation cascade accelerates Bitcoin’s decline
A major driver behind the latest leg down has been a large-scale leverage purge. Over the past 24 hours, crypto liquidations totaled approximately $1.95 billion, with nearly $1.7 billion coming from long positions, according to market data. In just the past hour alone, close to $500 million in positions were wiped out, underscoring how quickly leveraged exposure was flushed from the system.
?$2BILLION LEVERAGE PURGE: NEARLY $500M WIPED OUT IN THE PAST HOUR
Crypto liquidations hit $1.95B in the last 24 hours, with $500M erased in just the past hour.
The brutal deleveraging came from $1.7B in long liquidations, against $213M from shorts. pic.twitter.com/iMsxZXMCoV
— Coin Bureau (@coinbureau) February 5, 2026
This imbalance between long and short liquidations suggests that many traders were positioned for continuation or a rebound, only to be forced out as prices broke lower. Such liquidation cascades often exacerbate downside moves, as market orders triggered by margin calls add to existing selling pressure.
From a technical perspective, Bitcoin is now trading near a critical support region. The daily chart shows a sequence of strong bearish candles accompanied by elevated volume, pointing to capitulation-like behavior. The relative strength index is hovering in the low 30s, while momentum indicators remain deeply negative, confirming that bearish momentum is still dominant despite increasingly stretched conditions.
The $63,000 – $65,000 area is emerging as a key battleground. A sustained hold above this zone could allow selling pressure to ease as leverage has already been significantly reduced. However, a decisive break below could expose lower support levels and extend the corrective phase, particularly if broader risk sentiment remains fragile.
For now, Bitcoin’s price action remains closely tied to whether the market has fully absorbed the recent deleveraging shock. With leverage largely flushed out and indicators deeply oversold, traders are watching to see if stabilization follows – or if additional downside is required before confidence begins to return.
