Bitcoin experienced a significant decline on Thursday, dropping below a crucial technical support level of $85,000, which initiated a widespread selloff throughout the cryptocurrency market. This downturn followed a failed attempt by Bitcoin to maintain the momentum gained from an earlier rally.
After peaking at nearly $89,500, Bitcoin fell to a low of approximately $84,500, marking its weakest value in nearly three weeks, according to data from CoinGecko. Although there was a slight recovery later, the day closed with Bitcoin down by 1.6%, indicating ongoing market pressure.
As Bitcoin retreated, other major cryptocurrencies also succumbed to selling pressure. Ethereum (ETH) slid beneath $2,800, reflecting a daily decline of 1.1%. More pronounced losses were observed in other altcoins, with Solana dropping by 4% to below $120, its lowest point since April. Several altcoins, including Cardano, Dogecoin, and SUI, faced declines exceeding 5%, surpassing Bitcoin”s losses.
The sharp fluctuations in prices led to a wave of liquidations in derivatives markets. Data from CoinGlass revealed that over the past 24 hours, total liquidations reached $561.91 million, with 153,854 traders forced out of their positions. Long positions were particularly hard-hit, suffering losses of $375.23 million, while short positions incurred $186.69 million in losses.
During this selloff, Bitcoin accounted for the largest share of liquidations, with approximately $195.82 million in leveraged BTC positions being closed. Ethereum followed, with $148.16 million liquidated. Notably, the Hyperliquid (HYPE) token recorded $30.05 million in liquidations, and XRP faced $12.19 million in forced closures. The largest single liquidation was on Hyperliquid, where a $6.19 million BTC-USD position was wiped out.
Analysts are now focusing on the technical implications of breaking below the $85,000 support level. This threshold had previously acted as a strong buying zone for Bitcoin, and experts from AmberData have deemed it “critical.” They warn that a sustained breach of this support could lead to a deeper correction, possibly targeting $80,000, as indicated in a post on X.
As the market grappled with the decline, differing opinions emerged regarding the causes of the selloff. An on-chain analytics account, DeFiTracer, suggested that a coordinated sell-off by major platforms and market makers resulted in approximately $3 billion in Bitcoin sales, labeling the activity as “pure manipulation.” Conversely, other market participants argued that the selloff was a natural response to liquidity movements and user-driven transactions rather than a result of coordinated action.
With the volatility in the market, traders are closely monitoring whether Bitcoin can regain its footing. Analysts suggest that how it behaves around previous support levels will likely dictate the short-term direction of the cryptocurrency market. Until a clearer trend is established, market participants are preparing for continued fluctuations.
