Bitcoin came under renewed selling pressure on Wednesday as its price briefly dropped below $84,000, triggering around $280 million in long liquidations over a four-hour period.
BTC/USD had faced resistance near $87,000 before falling toward $84,000 around the start of Wall Street trading. The move brought Bitcoin close to its weekly low as traders watched key support levels for signs of further weakness.
Market analyst Rekt Capital identified $82,000 as an important level for Bitcoin to hold if the current short-term structure deteriorates. He said maintaining or successfully retesting that level could be important for the continuation of the broader bullish structure.
Bitcoin’s recent price movement has also been accompanied by weak spot-market demand. According to CryptoQuant, cumulative 30-day apparent spot demand stood at around negative 180,000 BTC as of Tuesday, indicating that supply continued to exceed demand over the period.
CryptoQuant said spot demand had narrowed its negative reading slightly, while futures demand continued to increase. The analytics platform noted that total demand was showing signs of recovery but remained in negative territory.
Bitcoin has gained more than 35% since the week beginning August 17, but the latest decline highlights continued volatility in the market. Earlier analysis had identified $90,000 as a potential consolidation area amid the possibility of increased profit-taking.
The latest correction has also drawn attention to the aggregate cost basis of US spot Bitcoin exchange-traded funds, which stands just below $86,000, making the level an important reference point for market participants.
