The price of Bitcoin (BTC) fell below $84,000 on Wednesday, leading to the liquidation of over $550 million in long cryptocurrency positions. At one point, Bitcoin temporarily dropped to $83,560 but managed to hold support at the 21-day simple moving average (SMA), which is $83,850. The surge in liquidations coincided with the emergence of 40x leveraged short positions on the Hyperliquid platform, as noted by analysts. According to data provided by TradingView, the BTC/USD price fell by 2.3% within two hours before returning to around $84,000. Amid tightening sell-side liquidity in exchange order books, the spot price failed to exceed $86,500 on Tuesday. Cryptocurrency position liquidations over the past 24 hours amounted to $550 million, according to CoinGlass data.
Blockchain data shows that before the sharp drop, four wallets used the stablecoin USD Coin (USDC) to open short positions on 148.49 BTC with 40x leverage on Hyperliquid. After the liquidation of long positions, open interest (OI) immediately began to recover on 21 tracked exchanges, increasing from approximately $54.2 billion to $55.3 billion over six hours between 4:00 and 10:00 Coordinated Universal Time (UTC).
Despite a 1.8% decline during the day, Bitcoin maintained support at the 21-day SMA around $83,850. Below, the $82,500 level remains crucial for maintaining Bitcoin's broader upward trend, as it is an important level in the inverted head and shoulders pattern that is still developing on the weekly chart. The last time the price was at this level was on September 28. Analyst Rekt Capital noted that closing the daily candle above $86,700 is necessary to maintain the bullish scenario. "At the moment, Bitcoin lacks confirmation on lower timeframes regarding this key level for continuation," he told his followers on X com.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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