Bitcoin slipped below $85,000 on October 7 as sellers rejected repeated attempts to break past the $87,000 resistance level. At the time of reporting, Bitcoin had retreated to approximately $84,128.
Despite the recent decline, Bitcoin continues to trade within a range that has held since late September. This zone previously acted as a strong support area, making the current level a critical test rather than a confirmed trend reversal. If buyers can defend prices around $85,000–$86,000, renewed efforts to hold within the trading range could lead to another attempt at $87,000. However, if sellers maintain downward pressure and the price falls below $83,000, the $80,000 zone could become exposed.
Liquidation Surge Accelerates Decline
The price decline extended to derivative markets, triggering $550.53 million in liquidations across crypto markets within 24 hours. Long positions accounted for over $484.6 million of that total, indicating that bullish traders absorbed the majority of losses.
Ethereum recorded the largest share of liquidations at $176.20 million after falling below $2,600, while Bitcoin followed with $144.67 million in liquidations. As leveraged positions faced forced closures, downward pressure on prices intensified, accelerating losses.
This liquidation wave could reduce excessive leverage and create a cleaner market structure. However, further sharp declines could trigger additional long liquidations, while price stabilization might allow sidelined buyers to rebuild positions without similar leverage pressure.
Sentiment Remains Cautious
The Fear and Greed Index stood at 63 at the time of reporting, declining from 67 on October 6. The index had previously climbed above 80 at the end of August before retreating sharply. Fading greed reflects caution rather than capitulation, with price stability emerging as the key factor in determining whether confidence will build or weakness will deepen.
