Bitcoin Falls Below $83K—Could a $75K Be Next?

The cryptocurrency market faced a sharp downturn on Wednesday, October 7, dropping over 2.7% and erasing more than $121 billion in total market value. Bitcoin led the decline as a wave of forced selling swept across crypto exchanges.

Bitcoin price fell as much as 3.3%, sliding from $85,550 down to $82,833. Ethereum  experienced a steeper drop, tumbling 5.3% to $2,560, while altcoins like XRP and Solana fell 4.5% and 3.3%, respectively.

Data from CoinGlass shows that the sudden price drop triggered over $612 million in leveraged position liquidations within a 24-hour window.

Short positions accounted for $550.27 million of the liquidations, while long positions accounted for $61.95 million. 

Among the liquidated long positions, Bitcoin accounted for about $153.92 million and Ether for $217.07 million. The scale of the liquidations shows how leverage can amplify a move that starts with a relatively modest decline in prices. 

The weakness in digital assets stands out because US stocks were moving in the opposite direction.

On October 6, the S&P 500 rose 0.58% to a record close of 7,818.93. The Dow Jones Industrial Average gained 0.49% to 51,521.28, while the Nasdaq Composite rose 0.45% to 27,599.79, also reaching a record close. 

The rally was supported by technology stocks, including AI-related chipmakers Nvidia and AMD, while easing Treasury yields and oil prices also helped sentiment.

Crypto market analysis firm Glassnode said in its October 7 review that Bitcoin’s spot market still looks fragile, making a sustained move above $85,000 difficult. 

Over the past 30 days, roughly $4.9B of new money entered through ETFs, stablecoins, and corporate buying. Bitcoin’s Realized Cap increased by about $12.8B, meaning less than 40% of that increase came from genuinely new capital.

At the same time, recent BTC buyers started taking profits as Bitcoin moved above $85K. On October 4, around 86% of Bitcoin flowing onto exchanges came from short-term holders selling at a profit. Glassnode says this is unusually high, and it could create additional selling pressure if BTC tries to rally toward $85K again.

Options traders remain bullish, but there are significant liquidation zones below the current price. The closest is $81.7K–$83.3K, followed by ~$75K and a much larger zone at $60K–$63K.

On the upside, a large concentration of short positions sits around $87K–$96K, with the biggest cluster near $92K. If Bitcoin breaks above ~$86.5K and keeps rising, those short positions could be liquidated, potentially adding fuel to the move higher.

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