Bitcoin Falls Below Key Support as $964M is Wiped off Market: Whats Next？

Bitcoin (BTC) drops 8.5% below the $84,000 level, with further decline possible if the price fails to reclaim former support levels.

Bitcoins price has dropped sharply in the past 24 hours, falling by 8.5% to $83,815, reflecting broader market concerns.

Specifically, the BTCUSD chart shows a steep decline, with Bitcoins value slipping from over $92,000 to $83,461. This downturn comes as investors pull back from riskier assets, driven by persistent worries about inflated tech valuations and fading expectations for near-term Federal Reserve policy easing.

The market‘s negative sentiment is clearly visible, with Bitcoin’s 24-hour trading volume reaching $109.3 billion. Over the past 7 days, Bitcoin has dropped 17.5%, and in the last 14 days, it has fallen 22.3%. This performance has left investors feeling increasingly cautious, hence the question of whether Bitcoin will fall further or benefit from a potential market rebound.

Bitcoin Price Analysis

Looking at the technicals, TradingViews latest chart reveals a strong bearish trend, with Bitcoin failing to maintain key support levels. The Bollinger Bands on the chart show that Bitcoin has recently broken below the lower band, which sits at $85,101.90.

Bitcoin

This breach indicates heightened market volatility, often signaling a potential continuation of the downward trend. The middle band (blue), which represents the 20-day simple moving average, is now acting as a dynamic resistance level at $98,789. If Bitcoin fails to recover above the middle band, further downside could be expected.

Elsewhere, the 1 Fibonacci level at $98,966, which has been a recent area of support, has now flipped into the key resistance BTC has to overcome. However, with the current price action below the middle Bollinger Band and below the lower Fibonacci levels, the outlook appears bearish, with the next potential support zones around $81,000 and $79,000 if the downward momentum persists.

$964 Million Wiped off the Market

Elsewhere, the Bitcoin liquidation data shows significant market activity, proving the heightened volatility in recent trading.

Over the past 1 hour, Bitcoin experienced a total of $507.26 million in liquidations. Of this, $500.36 million were from long positions, indicating a strong sell-off in the market, while $6.90 million came from short positions. This suggests that the downward pressure on Bitcoin is primarily affecting long traders.

Looking at the 4-hour period, the total liquidations rose to $514.97 million, with $506.38 million in long positions being liquidated and $8.59 million from short positions. Similarly, over the 12-hour period, liquidations surged to $600.88 million, with $582.55 million in long positions and $18.32 million in short positions.

The most dramatic figures appear in the 24-hour liquidation data, where a staggering $964.05 million were liquidated, with $931.65 million in long positions and $32.39 million in short positions. This shows that long traders are bearing the brunt of the market downturn, and optimism for price increases is being overshadowed by growing concerns over Bitcoins short-term outlook.