Bitcoin Price Plunges Below $84K as Rally Snaps

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.