​​​Major cryptocurrencies suffer sharp sell-off as Bitcoin, Ether and BNB face pressure

​Since the beginning of 2026, Bitcoin, Ether and Binance Coin (BNB) have faced heightened volatility, with a sharp sell-off underscoring how even the largest cryptocurrencies remain sensitive to market pressures, leveraged positioning and shifts in investor sentiment.

​Long-term narratives versus short-term dynamics

​While each asset is supported by a distinct long-term narrative - Bitcoin as a store of value, Ether as the backbone of decentralised finance and smart contracts, and BNB as a core utility token within the Binance ecosystem -  recent price action has been dominated by short-term dynamics that have amplified downside risk across cryptocurrencies.

​In the early weeks of the year, the three assets had shown signs of tentative resilience. Following recoveries from late-2025 lows, Bitcoin, Ether and BNB traded in choppy but broadly stable ranges. Sentiment was underpinned by optimism around regulatory clarity, continued institutional engagement through exchange-traded products, and confidence in ecosystem development.

​These factors encouraged longer-term investors to remain engaged despite ongoing uncertainty. However, that stability masked underlying vulnerabilities that became apparent as broader financial conditions deteriorated.

​Risk-off rotation triggers sell-off

​The catalyst for the current sell-off was a renewed risk-off rotation across cryptocurrencies, amid uncertainty over the timing of future interest rate cuts and weakness in technology stocks, triggered de-risking across speculative assets.

​Although Bitcoin typically acts as the most defensive asset within crypto, it was still used as a primary source of liquidity, while higher-beta assets such as Ether and BNB came under disproportionate pressure as traders reduced exposure.

​Leverage amplifies price movements

​Leverage dynamics played a central role in intensifying the decline. In the weeks leading up to the sell-off, derivatives data showed a rebuilding of speculative long positions across major cryptocurrencies as traders positioned for further upside. When prices failed to extend higher and instead broke below key technical support levels, stop-loss orders were triggered and liquidations accelerated. The forced unwinding of leveraged longs pushed prices lower than spot selling alone would likely have achieved, creating a self-reinforcing feedback loop across the market.

​Institutional flows turn tactical

​Institutional flows also reflected the shift in sentiment. Since the start of 2026, activity in Bitcoin, Ether and BNB-linked investment products has been selective rather than conviction-driven. Periods of inflows have alternated with outflows, highlighting a tactical approach to allocation. During the current sell-off, the absence of aggressive institutional dip-buying - particularly in Ether and BNB - left prices vulnerable to sustained downside momentum, while Bitcoin’s relative resilience still failed to prevent broader market weakness.

​Asset-specific concerns weigh on sentiment

​Asset-specific considerations further shaped the move. For Bitcoin, debates around macro hedging versus risk-asset behaviour resurfaced. For Ether, scrutiny around layer-2 economics and competition among smart-contract platforms weighed on sentiment. For BNB, lingering regulatory and exchange-related considerations added an extra layer of caution. While none of these factors represent a structural threat in isolation, together they reinforced a cautious tone.

​Technical analysis and key support zones

​Bitcoin’s sharp fall through its key $73,581.22 - $70,040.75 support zone on Thursday, 5th of February, is technically worrying for the bulls. A daily chart close below the July 2024 high at $70,040.75 would likely push the November 2024 low at $66,824.44 to the fore.

​Failure there may lead to the next lower $59,635.83 - $56,148.93 support zone to be reached. It encompasses several of the weekly lows seen between March and September 2024.

​Bitcoin weekly candlestick chart 

​Even if a bounce were to be seen, the April 2025 low at $74,441.20 would be expected to act as at least interim resistance.

​The technical picture looks similarly bleak for Ether which has slipped right through its major at $2141.30 - $2095.58 support zone which is made up of the April 2023 high and December 2023 to June 2025 lows.

​Another potential support zone can be found between the August 2022 - July 2023 highs at $2030.87 - $2018.77. Failure there would engage the psychological $2000 region. Further down lies the $1800 area.

​Ether weekly candlestick chart 

​Resistance can now be spotted in the $2140 to $2200 region.

​When it comes to BNB, the technical picture is similarly dismal with the May-to-June 2025 highs between $697 - $674 being revisited.

​Further down lies the $645.00 - $602.80 support zone as well as the $600 mark. This support area consists of the March to May 2024, July to October 2024, March 2025 highs and the June 2025 low.

​If fallen through, the February to April 2025 lows at $518.8 - $508.10 may perhaps also be reached.

​BNB weekly candlestick chart 

​Resistance is now seen between the May 2025 high at $697.70 and the minor psychological $700 mark.

​Looking ahead for major cryptocurrencies

​Looking ahead, the trajectory of Bitcoin, Ether and BNB will depend on whether broader market conditions stabilise and whether confidence among institutional and retail investors can rebuild without renewed liquidation pressure.

​For now, the sharp sell-off serves as a reminder that even the most established cryptocurrencies, with strong structural narratives and deep liquidity, remain vulnerable to shifts in sentiment, leverage unwinds and tactical positioning when macro volatility returns.