Bitcoin experienced a 'brutal four-hour death spiral' with over $118.63 million in long positions liquidated, a 2,618% imbalance compared to shorts. this signifies a massive flush of overleveraged bullish bets.
The analysis is based on coinglass data, a reputable source for crypto derivatives, reporting a significant and unusual liquidation imbalance. the interpretation aligns with standard market dynamics.
The extreme liquidation imbalance, coupled with the breaking of the $69,000 psychological level, indicates a significant crack in bitcoin's market structure. bulls were caught off guard, and the article suggests a 'deeper de-risking cycle' could push btc into the $40,000 to $50,000 range.
The article warns of a 'deeper de-risking cycle' in 'next sessions,' suggesting that the bearish sentiment and potential price decline could extend beyond immediate short-term fluctuations, possibly over weeks or months.
Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Read U.TODAY on Google News According to CoinGlass , Bitcoin bulls got steamrolled today — big time. In a ruthless four-hour window, over $118.63 million in long positions were force-liquidated, compared to just $4.53 million in shorts. Advertisement That is a 2,618% imbalance — one of the most one-sided liquidation events since 2026. Source: CoinGlass The total four-hour “rekt” count hit $123.17 million, exposing a brutal asymmetry in crypto dynamics. This was not just an ordinary liquidation wick. It is fair to call it a direct liquidation flush through long-heavy leverage, mostly concentrated near the $70,000 BTC defense line that had already been under stress since the previous session. HOT Stories Morning Crypto Report: XRP Officially Decouples From Bitcoin Amid $850 Million Bloodbath, Ripple's Main Japanese Ally to Launch Own Blockchain, Shiba Inu (SHIB) Eyes 26% Discount Thanks to Bear Market Mark Dow: I Want Bitcoin to Go to Zero Funnily, funding remained elevated across key platforms like Binance and Bybit, suggesting that bulls had not de-risked at all. Advertisement What does liquidation imbalance mean for Bitcoin (BTC)? The liquidation imbalance on Feb. 5 points to a leveraged market in denial, holding on to bullish bias while deeper structural breakdowns were already forming across macro, ETF flows and derivatives. The 24-hour figures show $466.32 million in long liquidations out of $527.99 million total — over 88% — but the four-hour chart is what caught particular fire. You Might Also Like Thu, 02/05/2026 - 13:56 Schiff to Bitcoin Holders: Abandon Sinking Ship By Alex Dovbnya Advertisement Bitcoin market structure has been cracked during this flush as the leading cryptocurrency hit $69,000, a 2021 all-time high and crucial psychological level for BTC. In this case, the 2,618% imbalance is a forensic marker of how far bullish conviction detached from execution risk. Should the same environment persist in the next sessions, Bitcoin could be staring at a deeper de-risking cycle that takes it far below current psychological zones, with the $40,000 to $50,000 range acting as a magnet. #Bitcoin #Bitcoin News #Liquidation Imbalance