Cryptocurrency losses accelerated Thursday afternoon as Bitcoin It fell below key support at $85,000, falling to $84,500 – its lowest price in nearly three weeks – before recovering slightly.
The move erased BTC’s early gains to $89,500 and dragged the broader cryptocurrency market lower. ether Solana’s SOL fell below $2,800, down 1.1% in the past 24 hours, while Solana’s SOL fell 4% to fall below $120, its lowest level since April.
Altcoins lead losses, , SUI plunged more than 5%, exceeding Bitcoin’s 1.6% daily decline.
CoinGlass data shows that in the past 24 hours, violent price fluctuations across the board triggered a liquidation of $550 million in the derivatives market, clearing out short and long leveraged trading positions.
The $85,000 level has been a key support area in recent weeks, with BTC finding buyers there on multiple occasions. Analysts at crypto analytics firm AmberData warned that this level is “critical” and if BTC loses it decisively, it could open the door to a further pullback towards $80,000.
An examination of the perpetual swap market shows that funding rates for many altcoins have turned negative, meaning short positions seeking to profit from lower prices are paying long positions to keep their positions open, CoinGlass data shows. This suggests traders are being cautious and risk-averse.
Still, the lack of a surge in trading volumes suggests the market is experiencing an “orderly” “Deleveraging,” not panic selling, AmberData analysts said.
“The lack of volume surge during the sell-off suggests seller exhaustion rather than the emergence of new supply,” they said.
