Cryptocurrency losses accelerated Thursday afternoon as bitcoin It broke below the key $85,000 support level, falling to $84,500, its weakest price in almost three weeks, before recovering slightly.
The move erased BTC’s morning rally to $89,500 and dragged the broader crypto market lower. Ether fell below $2,800, down 1.1% over the past 24 hours, while Solana’s SOL fell 4% to below $120, its lowest level since April.
Altcoins led the defeat, with , and SUI fell more than 5%, outpacing bitcoin’s 1.6% daily drop.
Wild price swings across the board led to $550 million worth of liquidations in the past 24 hours in derivatives markets, CoinGlass data shows, wiping out both long and short leveraged trading positions.
The $85,000 level had served as a key support area in recent weeks, and BTC found buyers there several times. Analysts at AmberData, a cryptoanalysis firm, described this level as “crucial,” and a decisive BTC loss could open the door to a deeper correction towards $80,000, analysts at cryptoanalysis firm AmberData warned.
A check of the perpetual swap markets shows that funding rates for many altcoins have turned negative, CoinGlass data shows, meaning that shorts, looking to benefit from lower prices, are paying longs a fee to keep their positions open. That indicates that traders remain cautious and risk-averse.
Still, the lack of an increase in trading volume suggests that the market is undergoing an “orderly evolution.” deleveraging,” rather than panic selling, AmberData analysts said.
“The lack of an increase in volume following the sell-off indicates that sellers are exhausted rather than new supply emerging,” they said.
