Bitcoin Breaks Higher towards $85k as Gold and Silver See Heavy Sell-Off

Bitcoin has gained nearly 3% in the last hour while precious metals face their largest crash in decades. Gold dropped 13.6% below $4,900, erasing $5 trillion in value. Silver collapsed 30% below $85, wiping out $1.96 trillion in just 36 hours.

As at time of writing, the cryptocurrency trades at $83,937.40, marking a 0.1% increase over 24 hours. However, BTC recorded a 6.01% weekly decline amid broader market turbulence. Analysts now question whether Bitcoin can recover from current levels.

According to Lookonchain, Bitcoin ETFs experienced significant outflows during this period. One-day net flows showed withdrawals of 7,856 BTC worth $653.98 million. Weekly outflows reached 10,695 BTC, totaling $890.28 million in redemptions.

Jan 30 Update:#Bitcoin ETFs:
1D NetFlow: -7,856 $BTC(-$653.98M)🔴
7D NetFlow: -10,695 $BTC(-$890.28M)🔴#Ethereum ETFs:
1D NetFlow: -41,542 $ETH(-$113.83M)🔴
7D NetFlow: -21,314 $ETH(-$58.4M)🔴#Solana ETFs:
1D NetFlow: -10,786 $SOL(-$1.26M)🔴
7D NetFlow: +96,033… pic.twitter.com/KRfkdfNKGz

— Lookonchain (@lookonchain) January 30, 2026

Precious Metals Enter Historic Danger Zone

Silver’s monthly RSI reached 95 before the crash, the second-highest reading in over 60 years. This extreme level has appeared only twice in modern history.

During 1979-1980, silver’s monthly RSI moved above 90. The metal subsequently collapsed 90% from its peak. In 2009-2011, similar RSI extremes preceded a 65% decline from peak to trough.

Silver peaked at $122 before falling to $83, representing a 30-32% decline so far. Historical patterns suggest the first sharp drop typically does not mark the bottom. Price resets aggressively before stabilizing when silver becomes this overextended.

Platinum dropped 27.25% below $2,100, erasing $215 billion in value. Palladium fell 21.5% below $1,700, wiping out $85 billion. Over $7 trillion has been erased from precious metals markets combined.

Bitcoin Outperforms Amid Broader Selloff

According to CryptoQuant, Bitcoin experienced a more moderate pullback of about 5% compared to gold and silver. The S&P 500 and Nasdaq were not spared from the broader market selloff.

Global Sell Off: -8% Gold, -12% Silver, -5% BTC, while Binance Open Interest back up to Pre-October 10 Levels

“This represents an increase of roughly 31% since then, gradually reflecting the return of risk appetite among investors.” – By @Darkfost_Coc pic.twitter.com/xKvYmbesRu

— CryptoQuant.com (@cryptoquant_com) January 30, 2026

Microsoft announcements related to artificial intelligence investments triggered the decline. The company’s stock dropped more than 12%, causing a domino effect across global markets.

The correction triggered nearly $300 million in long position liquidations within hours. Hyperliquid accounted for the largest share at $87.1 million. Binance recorded roughly three times less at around $30 million despite higher trading volumes.

Bitcoin has fallen out of the top 10 global assets by market cap, now ranked 11th. The cryptocurrency holds a $1.66 trillion market cap, trailing gold, silver, Nvidia, Alphabet, and Aramco.

Open interest on Binance reached 123,500 BTC, surpassing pre-October 10 levels of 93,600 BTC. This represents a 31% increase, reflecting returning risk appetite among investors.

Bloomberg Senior ETF Analyst Eric Balchunas noted Bitcoin has risen 429% since 2022, compared to gold’s 177% and silver’s 350%. The QQQ index gained 140% over the same period. Balchunas suggested the institutionalization narrative was priced in quickly ahead of actual adoption.

BTC Tests Lower Bollinger Band as Bearish Indicators Dominate

Bitcoin trades at $84,168.34 on the daily chart, down 0.53% over 24 hours. The price has declined approximately 30% from cycle highs near $120,000.

The Bollinger Bands show elevated volatility. The upper band sits at $97,965.90 while the lower band rests at $83,517.67. Price is hugging the lower band, just $650 above it.

The 20-day SMA at $90,741.78 serves as dynamic resistance. Multiple bounce attempts have failed at this level. Reclaiming this zone would be necessary for any trend shift consideration.

Immediate support exists at $83,500-$84,000, currently being tested. Secondary support sits at $80,800-$81,000 from multiple prior tests. Major support lies at $76,000-$78,000.

The Vortex Indicator shows extreme bearish dominance. VI- reads 1.3003 while VI+ shows 0.6395. This 2:1 ratio confirms sellers maintain complete control.

Volume has diminished on recent price declines, suggesting potential selling exhaustion. A volume-price divergence often precedes short-term relief bounces. The outlook remains bearish until price reclaims $90,700 with conviction.