After failing to maintain the $87,000 threshold, bitcoin erased its recent rebound. The price fell as low as $83,508 as liquidations of bullish positions amplified the bearish movement.
In brief
- Bitcoin failed to stay above $87,000.
- BTC lost almost $2,000 in 30 minutes, down to $83,508.
- Liquidations of long positions amplified the bearish movement.
- Nearly $583 million in positions were liquidated in the crypto market.
- The zone of 80,000 to 84,000 dollars becomes decisive for the continuation of the rebound.
Bitcoin loses $2,000 in just 30 minutes
Bitcoin had, however, approached 87,000 dollars for the second time this week, after an increase of almost 2,000 dollars in less than twelve hours. However, buyers failed to defend this level, leading to an initial pullback towards $85,300.
Then, an attempted rebound stalled below $86,000. The breakdown of such support accelerated the fall. Thus, BTC lost nearly $2,000 in thirty minutes, before reaching an intraday low of $83,508. The provisional return towards 84,800 dollars was not enough to reverse the trend.
The main figures reveal the speed of the reversal:
- A weekly high above $87,000;
- An intraday low at $83,508;
- A drop of almost 2.7% in twenty-four hours;
- A capitalization of bitcoin dropped from 1740 to less than 1700 billion dollars;
- Total capitalization of the crypto market has fallen below $3,000 billion.
Long positions concentrate liquidations
The fall triggered nearly $171 million in liquidations in bitcoin positions. About $131 million was in long positions, more than three-quarters of the total. These traders had bet on a continuation of the rise, often using leverage.
Nearly $441 million in long positions and 142 million in short positions were subject to crypto market-wide liquidations. This total is therefore closer to $583 million. These figures may change.
Liquidations are not necessarily the initial cause of the fall. However, they can speed it up. When a leveraged position approaches its maximum loss threshold, the exchange closes it immediately. This forced sale then exerts additional pressure on prices.
Such a reversal occurs after a reverse move. During the previous rally above $86,000, the rise forced many short sellers to repurchase their positions, leading to a significant short squeeze.
$87,000 remains the decisive resistance
According to analyst Rekt Capital, such a configuration corresponds to a “classic post-rejection retest”. BTC tested resistance. He failed to surpass it sustainably, then returned to seek lower support. However, this reading is a technical analysis and does not offer any guarantee on the future trajectory.
The $87,000 threshold remains the main resistance to watch. A weekly close above this level would consolidate the hypothesis of a lasting recovery. Conversely, new releases would reveal that sellers retain control of this area.
Stabilization above $84,000 would still allow the formation of an ascending trough. Thus, the support located around $80,000, however, becomes more important. Its defense could preserve the recovery structure, while a breakdown should increase the risk of a return to the levels observed before this rally.
The recent rebound is not yet entirely reversed
A week earlier, bitcoin was at around $75,900 before crossing the $87,000 threshold. This development represented almost 15%, mainly supported by flows into ETFs and forced redemptions of short positions.
Even after its correction towards $83,500, BTC remains close to 10% ahead of this recent low. However, this drop shows the fragility of a rally heavily fueled by leverage.
The next scenarios may depend on the ability of buyers to defend the zone between 80,000 and 84,000 dollars. Thus, ETF flows, the progression of open interest on derivatives and a probable closing above $87,000 will make it possible to assess whether this decline represents a simple consolidation or the start of a correction.
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