Bitcoin Drops $1,600 in Two Hours as Selling Pressure Peaks

Bitcoin (BTC) fell $1,600 in roughly two hours early Wednesday as aggressive selling and forced closures of long positions pushed two market indicators to extreme levels.

BTC dropped from $85,500 to $83,900 during the move, which occurred overnight on Oct. 7. The Taker Order Pressure Oscillator reached -4.9, indicating that market sell orders significantly outweighed buy orders.

The Liquidation Pressure Oscillator fell from -11 to -78 as leveraged long positions were liquidated during the decline. BTC later recovered to about $84,100 by 12 a.m. ET (04:00 UTC), while the selling-pressure reading improved to -3.1.

CryptoQuant analyst Axel Adler Jr. said a single deeply negative reading does not confirm a trend reversal. He identified a sustained break below $83,900, combined with continued negative readings for selling pressure and long liquidations, as the more important condition to watch.