📉 Bitcoin Tests Key Support Amid $650M Liquution Wave – What’s Next?
Bitcoin tumbled back toward the $84,000** level during Thursday’s U.S. session, triggering over **$650 million in leveraged long liquidations across the crypto market — the second-largest flush in the past month.
While traditional assets like stocks and gold have pared losses, crypto remains near daily lows, with major assets including BTC, ETH, SOL, and XRP down 5–7% over 24 hours.
🔍 Why Is Crypto Lagging the Bounce?
“A broad-based risk-off move is unfolding,” noted Joshua Lim of FalconX, citing weak earnings, geopolitical tensions, and positioning unwinds in equities and metals. “Crypto is feeling the pain along with other risk assets.”
📊 Funding Rates Hint at Possible Short-Term Bottom
Perpetual swap funding rates for major tokens have turned negative, meaning shorts are paying longs — a sign of crowded bearish sentiment. Historically, such conditions have often preceded short-term reversals as overextended shorts get squeezed.
⚖️ Key Levels to Watch
· $84,099: Approximate aggregate cost basis of U.S. spot Bitcoin ETF buyers.
· **$80,000**: A major structural support zone, aligning with the True Market Mean Price and the November 2025 low.
A sustained break below $80K could open the door to a retest of $76,000 (April 2025 lows).
📉 A Rare Losing Streak for Bitcoin
If monthly losses hold, January would mark BTC’s fourth consecutive down month — a pattern not seen since 2019, and not even during the 2022 bear market.
🔄 What Could Turn the Tide?
Some analysts believe Bitcoin may need a clear shift toward monetary easing from the Fed before regaining momentum. Until then, the market remains sensitive to macro uncertainty and risk-off flows.
Stay vigilant, watch liquidity, and keep risk management front of mind in volatile conditions.
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