$680M Longs Liquidated
January 19, 2026
WE TOLD YOU MONDAY WOULD BE VOLATILE. WE DID NOT SAY WHICH DIRECTION.
Remember Friday's newsletter when we said "Monday could be VIOLENT"? Well, congratulations - you are witnessing a $680 MILLION liquidation massacre.
Bitcoin crashed from $97K Friday to $92K Sunday night (down -5.1%). Ethereum got WRECKED even harder, falling to $3,192 (down -3.6%). Altcoins? Absolute CARNAGE. SOL -6.7%, SUI -10%, ZCash -10%. The entire crypto market cap lost $150 BILLION in 48 hours.
And you know what the catalyst was? Not crypto fundamentals. Not blockchain technology. Not on-chain metrics.
It was Donald Trump threatening 10% tariffs on EIGHT European countries over... wait for it... GREENLAND.
Yes, you read that right. The crypto market just lost $150B because Trump wants to buy Greenland and threatened Denmark, Norway, Sweden, France, Germany, UK, Netherlands, and Finland with tariffs unless they let him.
You cannot make this up.
Friday we were at $97K with overleveraged longs, RSI at 70, everyone FOMO-ing into $100K calls. Now? $680M in longs liquidated. Weak hands shaken out. RSI reset to 59. Fear back in the market. And we are sitting right on TOP of the $92K support that has held for 3 MONTHS.
This is not the end. This is the RELOAD. Let me show you why contrarians are about to EAT this week.
SECTION I: THE WEEKEND MASSACRE
Friday Jan 17, 4PM UTC:
• Bitcoin: $95,500 (consolidating post-$3B options expiry)
• Ethereum: $3,320
• Market: Calm, waiting for Monday Wall Street open
• Sentiment: Cautiously bullish
Saturday Jan 18, 2PM UTC: TRUMP DROPS THE NUKE
President Trump announces on Truth Social:
"Starting February 1, 2026, Denmark, Norway, Sweden, France, Germany, UK, Netherlands, and Finland will face 10% tariffs on ALL goods entering the United States. Tariffs will rise to 25% on June 1 unless a deal is reached for the COMPLETE AND TOTAL PURCHASE OF GREENLAND."
Market reaction: IMMEDIATE PANIC.
Saturday 6PM - Sunday 2AM: THE LIQUIDATION CASCADE
• Bitcoin: $95,500 to $92,000 (down -3.7% in 8 hours)
• Ethereum: $3,320 to $3,190 (down -3.9%)
• Liquidations: $680 MILLION total
- $600M in LONG positions (bulls getting destroyed)
- $80M in shorts
• Volume: EXPLODES to 2x normal weekend levels
WHY THE LIQUIDATIONS WERE SO BRUTAL:
After Friday rally to $97K, traders were OVERLEVERAGED long. Everyone positioned for "Monday breakout to $100K." Leverage ratios were HIGH. When Trump tariff news hit on a WEEKEND (low liquidity), it created a perfect storm:
1. Low liquidity = bigger price swings
2. Overleveraged longs = cascading stop-losses
3. Risk-off sentiment = mass de-risking
4. Margin calls = forced selling
The result? $680M in positions VAPORIZED. That is the 4th largest liquidation event in 2026.
Monday Jan 19, 8AM UTC (NOW):
• Bitcoin: $92,548 (attempting bounce from $92K support)
• Ethereum: $3,192
• Market Cap: $3.21T (down from $3.36T Friday = -$150B)
• Fear & Greed Index: 49 to 45 (back to FEAR)
• Gold: $4,617 (new ATH, safe haven flows)
• Silver: $93.18 (rallying with gold)
The market is in PANIC mode. But should YOU be panicking? HELL NO. Let me explain.
SECTION II: WHY THE MASSACRE IS ACTUALLY BULLISH
CRITICAL INSIGHT: The best buying opportunities come when everyone else is SELLING. And right now? Everyone is selling.
Here is why this flush is EXACTLY what the market needed:
REASON #1: OVERLEVERAGED LONGS GOT FLUSHED
Friday rally to $97K was built on LEVERAGE. Too many longs. Too much FOMO. Funding rates were elevated. Open interest was bloated. This was UNSUSTAINABLE. You cannot build a healthy rally on 50x leverage cowboys.
The $680M liquidation did what NEEDED to happen: It RESET the market. All those overleveraged positions? GONE. Funding rates? NORMALIZED. Open interest? HEALTHY levels.
Now when we DO break $97K, it will be on SPOT demand, not leverage. That is SUSTAINABLE.
REASON #2: WEAK HANDS ELIMINATED
Who sold into Sunday dump?
• Panic sellers
• Overleveraged traders getting liquidated
• Retail FOMO buyers from Friday who bought the top
Who is buying the dip at $92K?
• Whales (on-chain data confirms)
• Long-term holders (exchange outflows increasing)
• Institutions (quietly accumulating)
Every flush removes weak hands and transfers coins to STRONG hands. That is BULLISH distribution.
REASON #3: WE ARE SITTING ON CRITICAL SUPPORT
Bitcoin $92K is NOT a random level. It has been tested MULTIPLE times:
• December 2025: Bounced from $92K
• Early January 2026: Held $92K
• Sunday Jan 18: Tested $92K again
That is 3 SUCCESSFUL tests. Support gets STRONGER each time it holds. And so far? It is HOLDING.
Below $92K, the next major support is $90K (psychological) and $89,836 (scored 72/100 in multi-timeframe analysis). As long as we stay above $90K, the STRUCTURE is intact.
REASON #4: FEAR IS BACK (That is When You BUY)
Fear & Greed went from 49 (neutral) Friday to 45 (fear) Monday. When everyone is SCARED, that is your signal to be GREEDY.
Warren Buffett: "Be fearful when others are greedy, and greedy when others are fearful."
Right now? Others are fearful. What should YOU be? Figure it out.
REASON #5: THE TARIFF CATALYST IS PROBABLY FAKE
Let us be REAL about Trump Greenland tariff threat:
• Trump ALWAYS leads with maximum aggression in negotiations
• October 2025: Threatened 100% China tariffs, ended with NEW TRADE DEAL
• April 2025: "Liberation Day" tariffs, reversed after negotiations
• January 2026: Greenland tariffs, probably same outcome
Trump pattern:
1. Announce AGGRESSIVE tariffs
2. Markets panic and dump
3. Europe negotiates
4. Trump gets what he actually wanted (less than tariffs threatened)
5. Markets rally back
We are at step 2. Steps 3-5 coming. If you sell now, you are selling at the WORST possible time.
SECTION III: TECHNICAL DEEP DIVE
BITCOIN - $92,548
Current Status:
• Price: $92,548 (down -2.81% from Friday)
• 24h Range: $91,910 - $95,531
• Volume: $14.09B (LOWER than Friday $23B = panic subsiding)
• RSI: 59.83 (neutral zone, NOT oversold yet)
• Key Observation: BELOW EMA20 ($92,673) for first time since breakout
THE CRITICAL BATTLE: $94,500
Bitcoin broke BELOW the $94,500 breakout level on Sunday. This is the line in the sand. Here is what happens next:
BULLISH SCENARIO: Reclaim $94,500 This Week
If Bitcoin can get back ABOVE $94,500 with volume, this weekend dump was just a "fakeout" - a liquidity grab before the real move up.
• First target: $97,000 (retest)
• Second target: $100,000 (psychological)
• Third target: $108,000 (measured move from consolidation)
BEARISH SCENARIO: Weekly Close Below $94,500
If we CANNOT reclaim $94,500 by Friday weekly close, this becomes a FAILED breakout. That triggers:
• Pullback to $90,000 (major support)
• Potential move to $88,265 (score 60/100 support)
• Worst case: $80,000 (bearish target, LOW probability around 15%)
Risk/Reward Analysis:
• Upside to $108K: +16.7% ($92.5K to $108K)
• Downside to $80K: -13.5% ($92.5K to $80K)
• R/R Ratio: 1.24:1 (slightly favorable)
Translation: From $92.5K, you have SLIGHTLY better upside than downside. But the probability distribution matters more than raw R/R. And the probabilities favor UPSIDE (65%) vs downside (35%).
MULTI-TIMEFRAME LEVELS (13 Key Zones Identified):
SUPPORT LEVELS:
• $94,405 (score 94/100) - CRITICAL, just above current price
• $92,000 (psychological, currently testing)
• $90,000 (major psychological + historical support)
• $88,265 (score 60/100)
RESISTANCE LEVELS:
• $95,110 (score 60/100) - First hurdle
• $97,924 (score 60/100) - Friday high
• $101,828 (Supertrend resistance)
• $108,000 (measured move target)
Current Position: We are stuck between $92K support and $95K resistance. Break either way decides the next major move.
ETHEREUM - $3,192: Following Bitcoin Down
Current Status:
• Price: $3,192 (down -3.6% from Friday)
• Key Support: $3,100 (MUST HOLD)
• Next Support: $3,000 psychological
• Resistance: $3,300, then $3,400
THE STAKING WILDCARD:
Remember, 30% of ETH supply ($119B) is LOCKED in staking. That supply CANNOT hit the market even if people want to sell. This creates a FLOOR.
If ETH falls to $3,000, that is where institutional buyers will LOAD UP. Why? Because $3,000 ETH with 30% supply locked is UNDERVALUED compared to fundamentals.
Current play: If we hold $3,100, we are fine. Below $3,000? Could see $2,800. But that becomes a SCREAMING buy.
SECTION IV: THE WEEK AHEAD (Jan 20-26 Battle Plan)
MACRO CALENDAR (What Actually Matters):
Monday Jan 20:
• Martin Luther King Jr. Day (US markets CLOSED)
• Crypto markets open (24/7)
• European markets react to tariff threats
• Expect: Continued volatility, possible bounce attempt
Tuesday Jan 21:
• Wall Street RETURNS
• First real test of institutional appetite post-tariff news
• If stocks sell off = Crypto follows
• If stocks rally (Trump tariffs dismissed as bluff) = Crypto RIPS
Wednesday-Thursday Jan 22-23:
• Fed speakers (multiple)
• Watch for comments on rate cuts, inflation, trade policy
• Any dovish hints = Risk-on = Crypto UP
Friday Jan 24:
• Industrial Production data
• Weekly close (CRITICAL for $94.5K level)
• If we close ABOVE $94.5K = Bullish continuation
• If we close BELOW = Bearish structure
THREE SCENARIOS FOR THIS WEEK:
BASE CASE (50%): Chop and Recovery
Monday-Tuesday: Range $91K-$94K (digesting weekend drop)
Wednesday-Thursday: Tariff fears fade, rally to $95K-$96K
Friday: Close ABOVE $94.5K, setting up next week $100K attempt
How to Play:
• If BTC stays above $92K Monday: HOLD
• If BTC dips to $90K-$91K: ADD 10-15%
• Target: $97K-$100K by end of month
• Stop: Below $89K (structural break)
BULL CASE (30%): V-Shape Recovery
Tuesday: Trump tariffs revealed as negotiation tactic
Wednesday: Market rallies hard, BTC to $96K
Thursday-Friday: Break $97K, test $100K
How to Play:
• If BTC breaks $94.5K with volume: ADD 5-10%
• Aggressive: Buy $93K-$94K range now
• Target: $100K-$105K
• Stop: $91K
BEAR CASE (20%): Continued Selling
Monday-Tuesday: Trump doubles down on tariffs
Wednesday: BTC breaks $90K support
Thursday-Friday: Cascade to $88K, possibly $85K
How to Play:
• If BTC breaks $90K: CUT position to 20%
• Wait for $85K-$88K to reload
• This would be 2-3 week correction, NOT bear market
• DO NOT panic sell at $88K - that is the buy
SECTION V: UPDATED POSITIONS & ACTION PLAN
CURRENT STATUS (For Those Who Followed Our Plan):
BITCOIN:
• Original Entry: $90K-$92K
• Current Price: $92,548
• Profit/Loss: -0.5% to +2.8% (depends on exact entry)
• Stop Loss: $94K hit and triggered some positions
• Position Size: 40% went to Now 25-30% (partial stop-outs)
ETHEREUM:
• Original Entry: $3,100-$3,200
• Current Price: $3,192
• Profit/Loss: -0.3% to +2.9%
• Stop Loss: $3,100 (WATCHING CLOSELY)
• Position Size: 35% went to Now 30% (trimmed on bounce)
ASSESSMENT:
If you had stops at $94K for BTC, some got hit. That is FINE - that is what stops are for. You preserved capital. If you held through (stop at $90K), you are basically breakeven or small profit.
The key question: What do we do NOW?
MONDAY ACTION PLAN:
IF YOU GOT STOPPED OUT:
• Wait for $92K to prove as support (needs to hold Monday)
• If BTC bounces to $93.5K-$94K with volume: Re-enter 15%
• New stop: $91K
• Target: $97K-$100K
IF YOU ARE STILL IN:
• LOWER your stop to $90K (give it breathing room)
• If BTC dips to $90K-$91K: ADD 10% (average down)
• Do NOT add above $94K (wait for confirmation)
• Take profits at $97K (sell 20%), $100K (sell 30%)
IF YOU ARE ON THE SIDELINES:
Entry Zone 1: $91,000-$92,500 (current levels)
• Size: 15-20%
• Stop: $89,500
• Target: $97K-$100K
• Risk: -2.7% | Reward: +5-8%
Entry Zone 2: $89,000-$90,500 (if further dip)
• Size: 25%
• Stop: $87,500
• Target: $100K-$105K
• Risk: -2.8% | Reward: +12-17%
Breakout Entry: Above $95,000
• Size: 10% momentum
• Stop: $93,500
• Target: $100K+
• Risk: -1.6% | Reward: +5%+
SECTION VI: WHAT SMART MONEY IS SAYING
1. John Glover (Ledn CIO):
"We are currently in Wave IV of the major bull run. Competition target is between $71,000 and $84,000. The question that has yet to be answered is whether this is the FULL Wave IV or if we will have another move lower to $71,000."
OUR TAKE: Glover is calling for a deeper correction. If he is right, $92K is not the bottom - $71K-$84K is. BUT this is Elliott Wave theory, which is hit-or-miss. We are watching $90K as the KEY level.
2. Anthony Scaramucci (SkyBridge Capital):
"If Trump tries to seize Greenland it could legitimize Russian and Chinese territorial revisionism and damage American interests for decades. Hopefully Trump will be impeached and removed if he tries this. It is no longer a zero probability."
OUR TAKE: The Mooch is calling for Trump IMPEACHMENT over Greenland. That is how serious this tariff threat is being taken politically. If impeachment talk picks up, markets will freak out. WATCH THIS.
3. The Kobeissi Letter (Market Analysis):
"France President Macron calls for the EU to activate its most potent trade weapon against the US after Trump tariff threat. The next 48 hours are CRITICAL. EU is expected to adopt an aggressive but open approach. Trump ALWAYS leads with punishing and threatening messages - it is part of his negotiation tactic."
OUR TAKE: Kobeissi nails it. This is Trump negotiation playbook. Next 48 hours (Mon-Tue) determine if this escalates or de-escalates. If EU retaliates hard = Crypto down. If EU negotiates = Crypto up.
4. Fundstrat Report (Circulating):
"A potential crypto drawdown in early 2026 is possible, setting downside targets for Bitcoin, Ether, and Solana. However, we remain long-term bullish on the sector."
OUR TAKE: Even the bulls (Fundstrat = Tom Lee firm) are warning of near-term weakness. But note: "long-term bullish." Translation: Dip = Buy.
RECAPPING
TRUMP WANTS GREENLAND SO BAD HE IS WILLING TO NUKE THE CRYPTO MARKET
Let us talk about the ABSURDITY of what just happened.
Greenland. A territory of 56,000 people. Covered in ice. No major strategic value beyond rare earth minerals. Trump wants to BUY it from Denmark.
Denmark says no.
Trump response? Threaten 10% tariffs (rising to 25%) on Denmark, Norway, Sweden, France, Germany, UK, Netherlands, and Finland until they "negotiate" selling Greenland.
This caused:
• $150B crypto market cap wipeout
• $680M in liquidations
• European stocks to tumble
• Gold to hit new ATH at $4,617
• Geopolitical crisis between NATO allies
ALL BECAUSE OF GREENLAND.
And the best part? Trump tied this to the NOBEL PEACE PRIZE. He reportedly texted Norway Prime Minister saying if they support his Greenland purchase, it would be "Nobel Peace Prize worthy."
You cannot make this up.
Crypto Twitter reactions:
• "We are getting nuked over GREENLAND wtf"
• "Bitcoin crashes because Trump wants ice"
• "This is the dumbest timeline"
• "Crypto was supposed to be DECENTRALIZED from geopolitics. Guess not."
But here is the REAL kicker: Prediction markets are pricing in an INCREASING probability that Trump actually GETS Greenland.
Polymarket:
• "Will Trump acquire Greenland before 2027?" went to 14% (UP from 5%)
Kalshi:
• "Will Trump acquire at least part of Greenland by Jan 20, 2029?" went to 41%
If Trump ACTUALLY pulls this off and buys Greenland, that would be:
a) The craziest geopolitical move since Alaska purchase
b) BULLISH for crypto (shows USD dominance, fiat insanity)
c) Absolute madness
We are watching history unfold in the DUMBEST way possible. And crypto is along for the ride.
FINAL WORDS: BLOOD IN THE STREETS = BUY OPPORTUNITY
Let us wrap this up.
$680 MILLION in longs just got liquidated. Bitcoin dumped from $97K to $92K. Ethereum got hammered. Altcoins are bleeding. The market is in FEAR. And the catalyst? Trump threatening tariffs over GREENLAND (of all things).
Should you be scared? Should you sell?
HELL NO.
This is exactly what separates WINNERS from LOSERS in crypto:
Losers: Sell into dumps, buy into pumps
Winners: Buy into dumps, sell into pumps
Right now, we are at $92K. That is:
• -5% from Friday $97K high
• Sitting ON critical $92K support (tested 3x, held 3x)
• RSI at 59 (neutral, NOT oversold)
• Overleveraged longs FLUSHED ($680M liquidated)
• Weak hands GONE
• Fear back in the market (Fear & Greed at 45)
This is TEXTBOOK accumulation opportunity.
WHAT HAPPENS NEXT:
BASE CASE (50%): Trump tariff threat is negotiation theater. EU plays ball. Tariffs never actually happen. Market rallies back to $95K-$97K by end of week. We close ABOVE $94.5K Friday. Next week targets $100K.
BULL CASE (30%): Market realizes tariff threat is FAKE immediately. Tuesday rally starts. Wednesday breaks $97K. Friday tests $100K.
BEAR CASE (20%): Trump doubles down. EU retaliates. Trade war escalates. Bitcoin breaks $90K. Falls to $85K-$88K over 2-3 weeks. BUT that becomes the BUY of the year.
Even in the BEAR case, this is not a crash. It is a correction. And corrections are BUYING OPPORTUNITIES.
Our positions? Still holding core. Stops at $90K. Ready to add $89K-$91K if we dip. Taking profits at $97K, $100K, $105K when we recover.
This week separates the WEAK from the STRONG. The panickers from the accumulators. The paper hands from the diamond hands.
Monday-Tuesday are CRITICAL. Watch how the market reacts to Wall Street return. Watch how EU responds to Trump. Watch if $92K support holds.
If $92K holds? We are going back up.
If $92K breaks? We dip to $90K, possibly $88K, then LOAD THE BOAT.
One way or another, Bitcoin is going to $100K in 2026. The only question is: Do you buy the dip at $92K? Or do you panic sell and buy back at $98K after it is too late?
Choose wisely. See you at $100K.
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DISCLAIMER: This newsletter provides market analysis and trading intelligence for informational and educational purposes only. It is NOT financial advice. Cryptocurrency trading carries substantial risk of loss. Past performance does not guarantee future results. Always conduct your own research, understand the risks, and never invest more than you can afford to lose. The Rekt Reports and its authors are not registered financial advisors. Trade responsibly.
