Bitcoin’s Bullish Trajectory Intact Despite Short-Term Liquidation Storm

On February 5, 2026, bitcoin experienced a sharp corrective move, plunging below the $85,000 support level to touch $84,000 during the U.S. trading session. This sell-off triggered a massive liquidation event, with over $650 million in long positions being wiped out—marking it as the heaviest single-day liquidation event of January 2026 and the second-largest of the month. The downturn followed Bitcoin's repeated failure to sustain momentum above the psychologically significant $90,000 level and its inability to break through the formidable technical resistance zone between $94,000 and $96,000. This price action exposed underlying fragility in the market structure and prompted a shift in short-term technical indicators to a bearish posture. However, for professional practitioners with a bullish long-term outlook, this event is viewed not as a trend reversal but as a healthy and necessary correction within a larger macro bull cycle. The liquidation of over-leveraged long positions effectively cleanses the market of weak hands and excessive speculation, creating a more stable foundation for the next leg upward. Historically, such volatility and liquidation events have often preceded significant rallies, as they reset funding rates, reduce systemic leverage risk, and allow stronger, conviction-driven capital to enter at more attractive price points. The fundamental thesis for Bitcoin remains robust. Its role as a digital store of value, a hedge against global monetary debasement, and the foundational layer for an emerging decentralized financial system continues to gain institutional and sovereign adoption. The current pullback, while sharp, is likely a temporary phenomenon driven by derivatives market mechanics rather than a deterioration in core fundamentals. Key support levels below the current price will be closely watched for accumulation, and the failure to hold the $94k-$96k resistance zone simply redefines the near-term consolidation range. This volatility underscores the importance of a long-term horizon and risk management but does not diminish the transformative potential of Bitcoin in the global finance sector. The path to higher valuations is rarely linear, and today's turmoil is a testament to the market's ongoing process of price discovery and maturation.

Bitcoin Plunges to $84K Amid Market Turmoil, Marking January's Heaviest Liquidation Event

Bitcoin's rally abruptly reversed during Thursday's U.S. trading session, tumbling below $85,000 as over $650 million in long positions were liquidated—the second-largest wipeout this month. The collapse followed failed attempts to sustain prices above $90,000, exposing underlying market fragility.

Technical indicators turned bearish after BTC repeatedly faltered at the $94,000-$96,000 resistance zone. The breakdown below ascending channel support triggered cascading stop-losses, flipping former support into new resistance. Traders now watch critical demand levels NEAR $80,000 and $75,000.

Bitcoin (BTC) Faces Brutal Reality in 2026: Warnings From Giustra

Frank Giustra, mining magnate and Lionsgate founder, has issued a stark warning to Bitcoin enthusiasts anticipating central bank adoption. "Don’t hold your breath waiting for central banks to buy Bitcoin," he asserts. "They simply have no interest."

Giustra argues that Bitcoin’s decentralized nature directly threatens the monetary authority of central banks. These institutions, designed to control liquidity and stabilize economies, are unlikely to embrace an asset that undermines their power. Sovereign nations prefer controllable assets like gold, he notes, dismissing Bitcoin’s "digital gold" narrative as marketing hype.

The debate highlights a fundamental tension: Bitcoin’s promise of decentralization clashes with the centralized control that defines traditional finance. For Giustra, the outcome is clear—central banks will resist, not adopt.

El Salvador Doubles Down on Gold and Bitcoin for Economic Resilience

El Salvador continues its unconventional monetary strategy by aggressively accumulating both gold and bitcoin. The Central Reserve Bank purchased 9,298 troy ounces of gold worth $50 million, bringing total reserves to 67,403 ounces valued at approximately $360 million. Simultaneously, the nation maintains 7,547 bitcoins worth $635 million as part of President Nayib Bukele's dual-pronged approach to economic sovereignty.

This hybrid reserve strategy merges traditional safe-haven assets with cutting-edge digital stores of value. Gold's 5,000-year history as a crisis hedge now complements bitcoin's promise as decentralized hard money. The moves come as global markets face unprecedented volatility, with central banks worldwide accelerating gold purchases at record pace.

Bukele's administration demonstrates that monetary innovation isn't binary. By embracing both the oldest and newest forms of non-sovereign money, El Salvador positions itself as a laboratory for 21st-century central banking. The bitcoin treasury now represents nearly twice the dollar value of gold reserves, signaling confidence in crypto's long-term valuation thesis.

Bitcoin Plunges Below $83,000 Amid Macroeconomic Turbulence

Bitcoin's 2026 rally evaporated on January 29 as prices cratered below $83,000, erasing all year-to-date gains. The selloff triggered cascading liquidations across derivative markets, exacerbating downward momentum.

The drop reflects broader risk aversion as investors retreat from speculative assets. Traditional SAFE havens like gold also saw profit-taking, while equity markets retreated. Analysts now watch the $70,000 level as potential support.

Market structure appears fragile - the swift reversal of January's gains suggests weak hands dominate current trading. This marks Bitcoin's lowest level since November 2025, with technical indicators pointing to potential further downside.

Bitcoin Tests $84K Support Amid Risk-Off Market Sentiment

Bitcoin plunged to a two-month low, briefly touching $84,000 as risk aversion swept global markets. The sell-off followed Microsoft's disappointing earnings report, which triggered broader equity market weakness. Despite the downturn, analysts emphasize Bitcoin's strong long-term fundamentals, with structural valuation models pointing to a rising price floor.

Derivatives data reveals mounting leverage risks as bullish margin demand hits a 24-month high—even after a 26% price decline since April. Over $360 million in BTC futures liquidations loom if volatility persists. Analyst Pius the Banker's updated power law model identifies $60,000 as critical support, projecting sustained prices above $100,000 through 2027.

Binance Converts $1 Billion SAFU Fund to Bitcoin, Boosting Market Confidence

Binance, the world's largest cryptocurrency exchange, is shifting its entire $1 billion Secure Asset Fund for Users (SAFU) from stablecoins to Bitcoin. The MOVE signals unwavering confidence in Bitcoin's long-term value despite its volatility. Conversion will occur gradually over 30 days.

The SAFU fund, established in 2018 after a security breach, has historically been held in stablecoins for emergency liquidity. Binance's open letter frames the transition as both a strategic allocation and a hedge—the exchange will replenish the fund if Bitcoin's price drops the balance below $800 million.

This pivot coincides with Binance's broader security push, including safeguarding $163 billion in user assets. The decision reinforces Bitcoin's role as a institutional-grade store of value, potentially influencing other major holders.