Bitcoin Breaks $85K Support as Crypto Market Sees $550M Liquidations

Crypto markets faced renewed selling pressure Thursday afternoon as bitcoin slipped below the critical $85,000 support level, triggering broad losses across major digital assets. Bitcoin fell as low as $84,500, marking its weakest level in nearly three weeks, before staging a modest rebound. The drop erased an earlier rally that briefly pushed BTC toward $89,500 and reinforced growing caution among traders.

The bitcoin price decline weighed heavily on the wider crypto market. Ether fell below the $2,800 mark, down roughly 1.1% over the past 24 hours, while Solana posted sharper losses. SOL dropped around 4% to under $120, its lowest price since April, highlighting continued weakness in high-beta altcoins during periods of market stress.

Altcoins led the downturn, significantly underperforming bitcoin. Cardano, Dogecoin, and Sui each plunged more than 5%, reflecting reduced risk appetite among investors. As volatility increased, derivatives markets saw a surge in forced liquidations. According to CoinGlass data, approximately $550 million worth of leveraged positions were wiped out over the past day, affecting both long and short traders.

Market analysts noted that the $85,000 level had acted as an important support zone in recent weeks, repeatedly attracting buyers. Analysts at crypto analytics firm AmberData described this area as crucial for bitcoin’s short-term structure, warning that a decisive break could expose BTC to a deeper correction toward the $80,000 region.

Data from perpetual futures markets also signals a risk-off environment. Funding rates for many altcoins have turned negative, meaning short sellers are paying fees to long position holders. This shift typically indicates bearish sentiment and expectations of further downside.

However, analysts emphasized that the selloff has not been accompanied by a sharp spike in trading volume. This suggests the market may be experiencing an orderly deleveraging rather than panic-driven selling. According to AmberData, the lack of heavy volume implies selling pressure may be easing as weaker hands exit, potentially setting the stage for stabilization if key support levels hold.