Crypto losses accelerated Thursday afternoon as did bitcoin broke below the key $85,000 support level and fell to $84,500 – its weakest price in nearly three weeks – before rallying slightly.
The move erased BTC’s morning rally to $89,500 and dragged down the broader crypto market. Ether fell below $2,800, down 1.1% in the past 24 hours, while Solana’s SOL fell 4% to below $120, its lowest since April.
Altcoins led the way, med , and SUI falls more than 5%, outpacing bitcoin’s 1.6% daily decline.
The wild price swings across the board sparked $550 million in liquidations over the past 24 hours in derivatives markets, CoinGlass data shows, washing out both short and long leveraged trading positions.
The $85,000 level had served as a key area of support in recent weeks, with BTC finding buyers there several times. Analysts at crypto analysis firm AmberData described this level as “crucial” and BTC losing that crucial could open the door to a deeper correction towards $80,000, analysts at crypto analysis firm AmberData warned.
A check on perpetual swaps markets shows that funding rates for many altcoins have turned negative, CoinGlass data shows, meaning short positions looking to take advantage of lower prices are paying long positions a fee to keep their positions open. It signals that traders remain cautious and take risks.
Still, the absence of an increase in trading volume suggests that the market is undergoing an “order deleveraging,” rather than panic selling, AmberData analysts said.
“Lack of increase in sales volume indicates sellers are exhausted rather than new emerging,” they said.
