Why is crypto down today? Bitcoin’s $87K rejection, $550M liquidations, and more

On the 7th of October, Bitcoin [BTC] slipped below $85,000 as BTC’s attempts to break past $87,000 were rejected by unwavering sellers. At the time of writing, Bitcoin had retreated to approximately $84,128.

Despite this recent decline in price, Bitcoin is still trading within the main range that has held the price since the last week of September.

Additionally, before the recent decline, this zone had previously acted as a strong support area, with buyers consistently stepping in to defend prices. This makes the current level a key test rather than a confirmed trend reversal.

If the buyers can defend or regain the prices around $85,000–$86,000, then there will be renewed efforts to hold within this trading range. If successful in doing so, then the bulls should once again be able to attempt another run up to $87,000.

Conversely, if the bears continue to exert downward pressure on the price, and it falls below $83,000, then it will be apparent that the bears have successfully taken control. As a result, this would expose the $80,000 zone.

Liquidations surge as longs take the hit

The decline in price action extended to derivative markets, as over $550.53 million was liquidated across crypto markets within 24 hours. Of that lot, over $484.6 million of this was comprised of long positions.