Bitcoin Breaches $85,000 Support Triggering $550M in Liquidations and Broad Altcoin Selloff
Bitcoin breached the crucial $85,000 support level, falling to $84,500 intraday, its weakest point in nearly three weeks. The cryptocurrency dropped about 1.6% on the day, leading a broader selloff across the crypto market.
Altcoins experienced sharp declines, with Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and Sui (SUI) each falling more than 5%. SOL dropped below $120, marking its lowest since April, ADA fell to $0.3532, DOGE to $0.1228, and SUI declined over 5%. Ether also fell below $2,800.
Total liquidations on derivatives markets reached approximately $550 million within the past 24 hours, according to CoinGlass data. The loss of the $85,000 support level could pave the way for Bitcoin to retest $80,000, per AmberData.
Perpetual swap funding rates for many major altcoins turned negative, indicating that short positions were paying longs to keep positions open. Analysts noted that this market movement appeared to be an orderly deleveraging process rather than panic selling, citing the absence of a spike in trading volume.
