$BTC The cryptocurrency market is in a severe correction phase as of February 2, 2026. Bitcoin has broken multiple supports and reached a new 2026 low around $74,500–$74,600 intraday (currently trading ~$74,500–$75,800 on major exchanges). This represents a 3–6% drop in the last 24 hours and extends the drawdown from recent highs.

Key market data right now:

BTC 24h change: -3% to -6% (exchange-dependent)

24h low: ~$74,500–$74,600

24h high: ~$78,000–$79,000

24h volume: Elevated (heavy selling pressure visible)

ETH: ~$2,280 (down 4–6%)

SOL: ~$102–$103 (down 2–4%)

Total market cap: ~$1.5T (down significantly)

Liquidations (24h): $2.5B+ (over 335,000 traders liquidated, longs 93% wiped)

Fear & Greed Index: Extreme Fear (~14–18 level)

Main drivers of today's crash:

Geopolitical escalation – Iran port explosion in Bandar Abbas and rising US-Iran tensions have triggered broad risk-off sentiment across global markets.

US partial government shutdown – Ongoing funding bill deadlock adds political uncertainty and weighs on risk assets.

Massive liquidations cascade – $2.5B+ wiped in 24 hours (BTC $679M+, ETH $961M+), creating a self-reinforcing downward spiral.

Continued ETF outflows – Institutions de-risking aggressively, pulling billions in recent weeks.

Fed hawkish stance & leadership speculation – No quick rate cuts expected + Kevin Warsh chair nomination rumors increase tightening fears.

Macro headwinds – Tariff threats, dollar strength, thin early-week liquidity amplifying moves, tech stock spillover.

Technical levels to watch:

Immediate support: $74,000–$74,500 (today’s low)

Next major support: $73,000–$75,000 (MicroStrategy cost basis area + previous 2025 levels)

Deeper bear target: $70,000–$72,000 (if supports fail)

Resistance: $78,000–$80,000 (former support), then $82,000–$85,000 (EMA zone)

Trading plan – Spot vs Futures (professional view):

Spot trading (recommended for most users in this environment):

Why spot? No liquidation risk, allows holding through volatility, ideal for long-term conviction.

Strategy: Dollar-cost average (DCA) into spot on dips below $75,000–$76,000 if you believe in the long-term thesis (halving cycle, institutional adoption).

Targets:

Short-term bounce: $80,000–$85,000 (+10–15%)

Medium-term (Q2–Q3 2026): $90,000–$100,000

Long-term (end-2026): $110,000+ possible on macro improvement

Risk management: Scale in gradually (20–30% position now, rest on confirmation above $80K). Mental stop / re-evaluation below $73,000.

Futures trading (high-risk – experienced traders only):

Why caution? Leverage in a leverage-flush environment is dangerous (recent $2.5B liqs show longs getting destroyed). Funding rates negative in spots = crowded shorts.

If taking futures position: Use very low leverage (1–3x max) and only on reversal signals.

Example long setup (aggressive):

Entry: $75,000–$76,000

Take-profit levels: TP1 $80,000 | TP2 $85,000 | TP3 $90,000

Stop-loss: Below $73,500 (invalidates bounce thesis)

Risk: Very high probability of liquidation if price tests $70K–$72K. Avoid unless you can tolerate 20–30%+ drawdown.

Bottom line:

Extreme fear + capitulation-style liquidations often mark local bottoms historically. Spot accumulation during this panic has rewarded patient holders in past cycles. Futures should be approached with extreme caution due to liquidation risk.

DYOR – this is not financial advice.

What is your plan right now? Spot buying, holding, waiting, or reducing? Share your strategy in the comments.

#BinanceSquare #BTC #Bitcoin #cryptocrash #BuyTheDip #SpotTrading #Futures #Crypto2026 #MarketUpdate