# OvernightV-ShapedMoveinCrypto

#OvernightV-ShapedMoveinCrypto The recent overnight V-shaped move in crypto once again demonstrates how quickly sentiment, liquidity, and positioning can collide in digital asset markets. These rapid collapses and equally fast recoveries are not random anomalies. They are structural events that reflect how crypto’s 24/7, leverage-heavy ecosystem responds when imbalances reach critical levels.
During low-liquidity hours, markets become more fragile. Order books thin, bid depth weakens, and even moderate selling pressure can cascade into sharp declines. When combined with high leverage, this env

#OvernightV-ShapedMoveinCrypto
The cryptocurrency market recently witnessed a sharp and dramatic overnight V-shaped move, a price pattern that has once again highlighted the unique volatility and emotional intensity of digital assets. A V-shaped move occurs when prices fall aggressively in a short period of time and then recover just as quickly, forming a “V” on the chart. In crypto markets, such movements are not just technical phenomena they are the result of liquidity dynamics, leverage, sentiment shifts, and rapid capital rotation across global markets operating 24/7.
During overnight tra

#OvernightV-ShapedMoveinCrypto
📈 #OvernightV-ShapedMoveinCrypto — 4 February 2026 Market Highlight
Today’s crypto action featured a sharp overnight V-shaped volatility that traders can’t ignore.
🔄 What Happened:
• Bitcoin plunged as low as about $72,945 overnight before quickly rebounding to around $75,953, creating a classic V-shaped move in price action.
• Ethereum also dropped to roughly $2,110 and then recovered toward $2,340, showing similar kinked volatility patterns.
• Other large caps like SOL and BNB also dipped sharply then bounced partly from their lows, reflecting broad crypto m

#OvernightV-ShapedMoveinCrypto
📈 Overnight V-Shaped Moves in Crypto — What’s Behind Them?
In recent weeks, crypto markets have witnessed rapid, V-shaped recoveries, where sharp overnight sell-offs are immediately followed by equally strong rebounds. These moves are more than market noise — they signal capital rotation, liquidity triggers, and behavioral patterns that traders must understand.
1️⃣ Market Drivers Behind V-Shaped Moves
a) Liquidity Swings:
Large capital inflows or withdrawals from exchanges often create short-term price gaps. Overnight moves are amplified when liquidity is thin,

February 4, 2026 11:30 (UTC+8), BTC is currently trading at $76,300, with a 24-hour low of $73,112, down approximately 2.05%. The bearish dominance continues, oversold weak correction cannot change the trend, and the rebound is lackluster.
📊 Key Levels and Indicator Overview
- Resistance: $77,500-$78,000/$79,000 (Strong resistance at $78,000); Support: $75,000/$74,000/$73,112 (Strong support at $74,000).
- Moving Averages: 50/200-day moving averages are in a bearish alignment, with the price far below the averages, indicating strong suppression.
- RSI(: 14): 26-28, extremely oversold, weak re

#OvernightV-ShapedMoveinCrypto
The overnight V-shaped move in crypto demonstrates how quickly markets can reset after extreme positioning and forced liquidation. The initial decline was not driven by new fundamental news but by crowded long positions and clustered stops below key technical levels. Once those stops were triggered, liquidations accelerated the move, creating a fast and emotional sell-off. This phase was mechanical rather than discretionary, as leveraged traders were closed automatically.
After the liquidation cascade, selling pressure disappeared. Passive bids absorbed the rema

#OvernightV-ShapedMoveinCrypto
The Midnight "V" Storm: Crypto’s Flash Crash and Epic Recovery
​On the night between February 1st and 2nd, the cryptocurrency market witnessed one of the most stunning V-shaped recoveries in modern financial history. Bitcoin (BTC) spiked down to the $74,000 level within seconds, only to climb back to the $78,000 range by dawn. This wasn’t just a technical correction; it was a massive display of market psychology in action.
​Anatomy of the Storm: What Happened?
​This sudden move wasn't triggered by a single event; instead, three key factors converged to create a

#OvernightV-ShapedMoveinCrypto
The overnight V-shaped move in crypto wasn’t random — it was positioning, not panic.
🔹 Weak hands sold the headline
🔹 Smart money bought the structure
🔹 Liquidity gaps filled fast
This wasn’t about news — it was about who understood the macro setup.
What Actually Happened
Funding flipped negative → forced shorts
Spot absorption stayed strong
No systemic breakdown in structure
BTC held key macro levels
That’s not fear. That’s reset and re-accumulation.
Why V-Shapes Matter Here
V-shaped recoveries during:
Regulatory headlines
Policy uncertainty
Tight liquidity

📊 Overnight V-Shaped Move in Crypto — What the Market Is Really Signaling
Dragon Fly Official Market View
Overnight, the crypto market shocked many traders. Prices dropped aggressively, fear spread fast — and then, just as quickly, the market recovered. This was not a random bounce. It was a clear reaction to liquidity, positioning, and market structure.
Let’s break down what actually happened — and what Dragon Fly Official believes comes next.
🔍 Why the Market Fell First
The initial drop was driven by forced selling, not long-term weakness.
Here’s what was happening beneath the surface:
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