Bitcoin dipped sharply on Thursday afternoon, breaking below a key technical support level and triggering a broader selloff across the crypto market.
The downturn began after Bitcoin failed to hold momentum from an earlier rally. Prices fell below the closely watched $85,000 level and briefly touched $84,500, marking the asset’s weakest point in nearly three weeks.
This move effectively wiped out a morning advance that had pushed Bitcoin close to $89,500, according to CoinGecko. Although prices later recovered modestly, Bitcoin still ended the day down 1.6%, signaling continued pressure.
Weakness Quickly Spreads Across Major Tokens
As Bitcoin retreated, selling pressure spread to other large cryptocurrencies. Ethereum (ETH) followed lower, slipping beneath $2,800 and posting a 1.1% daily decline.
Losses were sharper elsewhere. Solana dropped 4%, falling below $120 and reaching its lowest level since April. The broader market fared even worse, as altcoins absorbed the brunt of the selloff. Cardano, Dogecoin, and SUI each recorded declines of more than 5%, outpacing Bitcoin’s losses.
Volatility Sparks Widespread Liquidations
The sharp price swings triggered a wave of liquidations in derivatives markets. According to CoinGlass, total liquidations reached $561.91 million over the past 24 hours.
During this period, 153,854 traders were forced out of positions. Long traders suffered the heaviest damage, with $375.23 million in bullish bets wiped out. By comparison, short positions were affected to a lesser degree, incurring losses of $186.69 million.
Bitcoin and Ethereum Lead Liquidation Totals
Unsurprisingly, Bitcoin accounted for the largest share of liquidations. CoinGlass data shows that $195.82 million in leveraged BTC positions were closed during the selloff.
Ethereum ranked second, with $148.16 million in liquidations. Other assets also saw notable activity. Hyperliquid (HYPE) token recorded $30.05 million in losses, while XRP experienced $12.19 million in liquidations.
The largest single forced closure occurred on Hyperliquid, where a $6.19 million BTC-USD position was erased amid the decline.
Analysts Highlight Risks Below $85,000 Support
Attention has now turned to the technical significance of the recent breakdown. The $85,000 level had served as a reliable support zone in recent weeks, with Bitcoin repeatedly attracting buyers near that price.
Analysts at AmberData described the level as ‘critical’. They further cautioned that a clear break of this support could expose Bitcoin to a deeper correction, potentially toward $80,000, as cited in an X post.
Dispute Emerges Over Cause of the Selloff
Meanwhile, as prices fell, disagreement grew over what drove the sudden drop. In a post on X, DeFiTracer, an on-chain analytics account, reported that major platforms and market makers sold large amounts of Bitcoin within a short timeframe. The account alleged roughly $3 billion in BTC sales and characterized the move as ‘pure manipulation’.
However, other market participants pushed back against that narrative. Instead, they contended the observed selloff reflected standard liquidity movements and user-driven transactions, rather than coordinated intervention.
With volatility elevated, traders are now watching to see whether Bitcoin can reclaim lost ground. Analysts suggest price behavior around former support levels may influence short-term direction. Until a clearer trend emerges, market participants appear braced for continued turbulence across the cryptocurrency market.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
