After weekend rout, bitcoin rebounds as liquidations ease
Bitcoin staged a relief rally after a sharp sell-off over the weekend, with the benchmark cryptocurrency rebounding toward the $79,000 level during Asian trading hours. The recovery helped ease losses caused by a liquidity-thinned market that pushed prices below $75,000. Reduced trading volumes over the weekend amplified volatility, triggering a rapid drop before buyers stepped back in to support prices.
Ether also showed signs of recovery, climbing back above the $2,300 mark. Other major cryptocurrencies, including Solana, BNB, XRP, and Cardano, recorded modest gains over the past 24 hours. Despite this short-term bounce, most large-cap tokens remain in negative territory on a seven-day basis, highlighting ongoing uncertainty and cautious sentiment across the broader crypto market.
Market snapshot: prices and positioning
Bitcoin traded in the high-$78k area after touching intraday lows around $74.5k on Monday. Ether recovered from lows near $2.16k. The rebound followed a spate of forced selling that swept derivatives venues over the weekend, exacerbated by thin liquidity. Reuters
Heavy liquidations tallied in the billions across majors punished over-levered longs; CoinDesk also flagged a single ETH account’s >$200m wipeout on a perpetuals venue. CoinDesk
Technical context: inflection near April lows
Analysts at CF Benchmarks argue the drop likely completed a bearish sequence that began with the October 10, 2025 deleveraging, placing bitcoin at an inflection around the April 2025 “Liberation Day” lows (~$74k). Sustained high-volume demand is needed to rebuild bullish structure; failure risks runs toward sub-$70k liquidity pockets.
Macro backdrop: policy, metals and Asia session tone
The sell-off coincided with renewed hawkish repricing around the Federal Reserve and U.S. regulatory uncertainty. During Asia trade, broader sentiment steadied as precious metals and regional equities bounced, aiding risk assets. Reuters
What’s moving the bitcoin relief rally after weekend sell-off?
Derivatives dynamics
Forced long liquidations and thin weekend order books amplified downside; the unwind eased into Monday/Tuesday, allowing spot bids to stabilize price. Reuters
Macro signals
Policy uncertainty and a firm U.S. dollar kept rallies measured, even as Asia equities and metals recovered from their sharpest drops in weeks.
Positioning reset
With majors still down on a 7-day basis, risk appetite remains fragile pending clearer macro guidance and flows. Investing.com
Trading levels in the bitcoin relief rally after weekend sell-off
Key support: ~$74k (April 2025 lows retested).
Near resistance: Psychological $80k; sustained closes above would help repair structure.
Downside watch: Liquidity clusters below $70k if support fails.
Context & Analysis
The weekend capitulation fits a familiar crypto pattern: leverage builds during low-vol regimes, then unwinds abruptly in thin liquidity. CF Benchmarks’ sequencing suggests the market may be transitioning, but confirmation requires persistent spot demand and calmer macro. Until regulatory clarity improves in the U.S. and Fed policy signals firm up, rallies are vulnerable to headline risk.
Concluding Remarks
Crypto markets showed signs of stabilization as liquidation pressure eased and risk sentiment in Asia improved, helping bitcoin recover toward the $79,000 level. The calmer market conditions reduced short-term volatility, allowing prices to rebound after recent weakness driven by aggressive sell-offs and thin liquidity.
The immediate focus now is on whether buyers can push bitcoin above the key $80,000 resistance and sustain that level. A successful breakout could strengthen near-term confidence, while failure to hold above this threshold may leave prices vulnerable to renewed downside moves toward deeper liquidity zones.
FAQs
Q : What triggered the weekend sell-off?
A : A leverage unwind during thin liquidity hours led to heavy long liquidations across major cryptocurrencies.
Q : How far did bitcoin fall before rebounding?
A : Bitcoin briefly traded near $74.5k before recovering toward the high $78k range.
Q : Did other tokens recover as well?
A : Yes. Ether rebounded from lows near $2.16k, with selective gains across large-cap tokens, though 7-day returns remain negative.
Q : Why do weekends see outsized moves?
A : Weekend liquidity is typically thinner, so forced liquidations can move prices more sharply.
Q : What is the key level to watch now?
A : $80k on the upside and around $74k as key support; losing the latter risks deeper moves toward sub-$70k liquidity.
Q : Does macro policy matter for crypto right now?
A : Yes. Federal Reserve policy expectations and swings in metals and equities are influencing risk appetite.
Q : Is this a durable bottom?
A : It’s too early to confirm. CF Benchmarks suggests a bearish sequence may be complete, but sustained spot demand is needed for validation.
Facts
Event
Crypto rebound after weekend rout; relief rally across majorsDate/Time
2026-02-03T13:00:00+05:00Entities
CF Benchmarks; CoinDesk; Reuters; Investing.comFigures
BTC ~$74.5k low → ~$78.5–$79k; ETH ~$2.16k low → >$2.3k; liquidations: multi-billion USD over 24–48hQuotes
“Bitcoin has completed the bearish sequence that began with the October 10 deleveraging… the recent washout retestinand briefly undercutting the April 2025 ‘Liberation Day’ lows around $74,000.” Gabe Selby, Head of Research, CF Benchmarks (via summaries reported)Sources
Reuters Instant View (precious metals/crypto) ; Investing.com BTC price wrap