Bitcoin drops to $75K amid $1.59B liquidations, extreme fear index at 16, traders monitor key support and reversal levels.
Bitcoin dropped sharply to $75719 before stabilizing near $79,000, reflecting a 6% decline over the past 24 hours. The move was one of the weakest daily performances of 2026 so far, as selling pressure mounted throughout the wider crypto market.
According to Binance market data, Ethereum also extended losses in the same period. ETH plunged below $2250 mark and is currently trading around $2300 and posting a 24 hour decline of around 12%. The synchronised fall pointed to increasing risk aversion amongst traders.
Bitcoin Faces Downside Risk After $1.59B Liquidation Wave
Data from Coinglass revealed that the total liquidations of crypto is around $1.59 billion in the last 24 hours. Notably, long positions were around $1.47 billion, which reflects the aggressive unwinding of bullish leverage in the sell off.
🚨BREAKING:
Bitcoin just dropped below $80k and is now down -$5,000 in the last 48 hours. pic.twitter.com/xbYxnlcMpp
— Ash Crypto (@AshCrypto) January 31, 2026
Analysts pointed at the $80,000 to $81,000 range as Bitcoin’s immediate support range. However, repeated tests have undermined confidence in that level and put more downside at risk if selling pressure continues to build.
If the current support fails to hold, analysts point to a major demand zone between $75,000 and $78,000. This range is seen as a potential range in which buyers will try to step in and stabilize the prices.
On the upside, resistance is firm with Bitcoin needing to make a return to more elevated levels to change the momentum in the near-term. Until then, traders are cautious with high volatility and deteriorating liquidity.
Fear Index Drops to 16 Amid Bitcoin Price Decline
Market sentiment has worsened dramatically along with declining prices. The Crypto Fear and Greed Index has crept into “Extreme Fear” with one of the lowest readings of 2026, today’s index reading at an approximate 16.
Extreme fear conditions are interpreted by some analysts as a possible capitulation phase. Historically, such periods have sometimes preceded short-term market bottoms, although confirmation usually will require reduced liquidation pressure and stabilization in prices.
For now, Bitcoin’s plummet below $80,000 highlights ongoing leverage risks in crypto markets. As the volatility is high, traders are closely monitoring key support levels for signs of a potential reversal or further downside.