Key Takeaways
- Bitcoin dropped below $84,000 after failing to breach resistance at $87,000 on Wednesday.
- Coinglass data shows the crash triggered $423M in long liquidations, pulling the total crypto market cap under $3T.
- Analyst Rekt Capital said BTC must hold support near $80,000 to confirm a macro breakout.
Rejection at Key Resistance
Bitcoin’s latest rally snapped Wednesday as the cryptocurrency dipped below $84,000 for the first time since Monday. The reversal came just hours after it breached $87,000 for the second time this week, following a gradual climb that saw the cryptocurrency add nearly $2,000 in under 12 hours.
Before its sharp downturn, bitcoin responded to the rejection at $87,000 with a gradual decline, seemingly finding a floor just below $85,300. Although a brief relief rally attempted to push prices back up, the momentum fizzled out before bitcoin reached $86,000.
The breakdown at $86,000 unleashed a sharp wave of selling, knocking bitcoin down $2,000 within 30 minutes to a low of $83,508. A quick relief bounce to $84,800 failed to alter the trajectory, though prices managed to settle above $84,000 by midday.
The pullback left bitcoin down 2.7% over the previous 24 hours, completely erasing the morning’s surge past $87,000 that had briefly delivered gains above 1%. The sudden slide trimmed bitcoin’s market valuation from $1.74 trillion to under $1.7 trillion, ultimately knocking the overall cryptocurrency market cap back below the $3 trillion mark.
After two days of short bets exceeding $100 million in liquidations, the script changed by the afternoon. According to Coinglass, liquidated long bets alone accounted for more than three-quarters, or $131 million, of the $171 million in leveraged bitcoin positions wiped out in 24 hours. Because the sell-off extended to altcoins, liquidated long positions also soared across the broader crypto market, reaching approximately $441 million compared with $142 million in short bets.
Analyst Weighs Post-Rejection Retest
Remarking on the cryptocurrency’s price action, crypto investor and analyst Rekt Capital said bitcoin’s sharp rejection at $87,000 fits a familiar pattern in which the price briefly breaks a key resistance level before revisiting lower support zones to validate them. According to the analyst, bitcoin’s price reflects a textbook “post-rejection retest” structure.
Rekt Capital emphasized that bitcoin’s drop toward $83,508 aligns with a broader trend he has been tracking: The market repeatedly revisits recently reclaimed levels to determine whether they can serve as new support. In this case, the stabilization above $84,000 suggests bitcoin may be attempting to establish a higher low, though the heavy long-side liquidations indicate that the market has not yet completed its recalibration.
The analyst added that bitcoin’s inability to maintain momentum above $87,000 reinforces the idea that this region remains a macro resistance zone. Until it can secure a weekly close above it, Rekt Capital argued, price will continue oscillating between inducement-driven rallies and liquidity-driven pullbacks—a dynamic he said is typical during transitional phases in major market cycles.
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