Bitcoin Loses $87,000 as $171 Million Gets Liquidated

After failing to hold the $87,000 threshold, bitcoin erased its recent rebound. The price dropped to $83,508, while long position liquidations amplified the downward movement.

Bitcoin loses $2,000 in just 30 minutes

Bitcoin had nevertheless flirted with $87,000 for the second time this week, after an increase of nearly $2,000 in less than twelve hours. However, buyers failed to defend this level, leading to a first pullback to $85,300.

Then, a rebound attempt stopped below $86,000. The break of such support accelerated the fall. Thus, BTC lost nearly $2,000 in thirty minutes, before hitting an intraday low of $83,508. The temporary return to $84,800 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 nearly 2.7% in twenty-four hours ;
• Bitcoin market cap fell from $1.74 trillion to under $1.7 trillion ;
• Total crypto market capitalization fell below $3 trillion.

Long positions concentrate liquidations

The drop triggered nearly $171 million in liquidations on bitcoin-related positions. Around $131 million concerned long positions, more than three-quarters of the total. These traders had bet on a continued rise, often using leverage.

Nearly $441 million in long positions and $142 million in short positions were liquidated across the crypto market. This total therefore approaches $583 million. These figures may evolve.

Liquidations are not necessarily the initial cause of the drop. However, they can accelerate it. When a leveraged position approaches its maximum loss threshold, the exchange immediately closes it. This forced liquidation then puts additional pressure on prices.

Such a reversal happens after an opposite move. During the previous rebound above $86,000, the rise forced many short sellers to buy back their positions, leading to significant compression of short positions.

$87,000 remains the decisive resistance

According to analyst Rekt Capital, such a setup corresponds to a “classic post-rejection retest”. BTC tested a resistance. It failed to sustain a breakout, then returned to seek a lower support. However, this reading is based on technical analysis and offers no guarantees on the future trajectory.

The $87,000 threshold remains the main resistance to watch. A weekly close above this level would strengthen the hypothesis of a sustainable recovery. Conversely, new rejections would indicate that sellers maintain control of this zone.

Stabilization above $84,000 would still allow the formation of an ascending low. Thus, the support around $80,000 becomes more important. Its defense could preserve the recovery structure, while a break would increase the risk of a return to levels seen before this rally.

The recent rebound is not yet fully canceled

A week earlier, bitcoin was around $75,900 before breaking above $87,000. This move represented nearly 15%, mainly driven by flows into ETFs and forced buybacks of short positions.

Even after its correction to $83,500, BTC maintains a lead close to 10% compared to this recent low. However, this drop shows the fragility of a rally heavily fueled by leverage.

Future scenarios may depend on buyers’ ability to defend the zone between $80,000 and $84,000. Thus, ETF flows, the growth of open interest in derivatives, and a probable close above $87,000 will help assess whether this pullback represents a simple consolidation or the start of a correction.