Bitcoin Drops Below $84K as $550M in Longs Liquidated — SkimNews
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- Bitcoin (BTC/USD) dropped as much as 2.3% over two hourly candles before recovering to circle $84,000, after exchange order-book ask liquidity above $86,500 prevented further upside on Tuesday.
- Crypto longs saw $550 million in cumulative 24-hour liquidations per CoinGlass data, with The Block's separate tally showing $487 million — the gap reflecting different snapshot times.
- Four wallets opened shorts on 148.49 BTC with 40x leverage on Hyperliquid using USDC stablecoin just before the drop, according to onchain data from Lookonchain.
- Open interest rebounded from approximately $54.2 billion to $55.3 billion across 21 exchanges over six hours (4 a.m.–10 a.m. UTC) after the long flush, suggesting traders added BTC exposure at the local lows.
- Bitcoin held above the 21-day simple moving average (SMA) near $83,850 despite trading 1.8% lower on the day, with $82,500 identified as the next decisive support.
- The $82,500 level forms part of an inverse head-and-shoulders reversal pattern on the weekly chart — last visited Sept. 28 — that remains the broader bullish structure in play.
- Analyst Rekt Capital told X followers that a daily candle close above $86,700 is needed to maintain a bullish setup, noting Bitcoin 'is lacking that lower timeframe confirmation relative to this key level.'
Why it matters: The $550 million long liquidation flushed leveraged bullish bets but failed to break Bitcoin's 21-day SMA near $83,850 — and the open-interest rebound to $55.3 billion shows dip-buyers stepping in. The 40x leveraged shorts opened on Hyperliquid moments before the drop, combined with the $86,500 ask-wall ceiling, reveals how thin orders of liquidity at these levels can ambush both sides.
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