Bitcoin slipped below 84000 in Wednesday Asian trading as markets awaited the Federal Reserve's meeting minutes and weighed inflation risks tied to higher oil prices. US listed spot Bitcoin ETFs posted 118.8 million in net inflows on October 6 after 89.8 million in outflows a day earlier, according to Farside, while charts cited in the report put near term support at 80000 to 82000.

Bitcoin (BTC) slid below $85,000 on Oct. 7 after repeated attempts to clear $87,000 were turned back by persistent selling. At the time of writing, BTC was trading near $84,128. Even with the pullback, Bitcoin remains inside the broad range that has capped price action since late September. The area had previously served as a firm support zone, with buyers repeatedly stepping in. That keeps the current move in the realm of a key test rather than a confirmed trend reversal. Technically, the $85,000–$86,000 band is in focus. A successful defense or quick reclaim could set the stage for another push toward $87,000. A breakdown below $83,000 would strengthen the bearish case and put the $80,000 area on the radar. Derivatives markets reflected the sell-off. More than $550.53 million was liquidated across crypto markets over the past 24 hours, with long positions accounting for over $484.6 million. As BTC lost range support, forced closures in leveraged trades added to downside pressure. CoinGlass data showed Ethereum (ETH) led liquidations at $176.20 million after dropping below $2,600, followed by Bitcoin at $144.67 million, signaling the move extended beyond BTC. The wave of liquidations may help flush excess leverage and improve market structure, though another sharp leg lower could spark additional long liquidations. Stabilization, by contrast, would give sidelined buyers room to rebuild exposure with less leverage risk. Market sentiment has cooled but remains constructive. The Fear and Greed Index stood at 63, down from 67 on Oct. 6, after having climbed above 80 in late August before retreating. Summary: Bitcoin fell below $85,000 as more than $550.53 million in positions were liquidated. Crypto markets now face a leverage reset; without steadier demand and price stabilization, further BTC weakness could trigger another broader liquidation cycle.

Whale Alert data shows 979 BTC worth US$82,401,569 was transferred from Robinhood to Cumberland.

Blockchain trackers report that 999 BTC, valued at US$84,270,890, was transferred from an unidentified wallet to Robinhood.

Robinhood has put $25 million of corporate funds into Bitcoin, underscoring its expanding push into crypto. Crypto chief Johann Kerbrat said the buy reflects the company's broader commitment to the digital-asset ecosystem. The allocation is small relative to Robinhood's roughly $100 billion market value, but it increases the firm's direct exposure to Bitcoin. Separately, Robinhood is preparing to roll out perpetual futures for eligible U.S. users, adding to its lineup of crypto trading products.

Bitcoin held on centralized exchanges has slid to roughly 6.5% of the cryptocurrency's total supply, according to Santiment, as investors continue moving coins off trading venues. Data show a net 24,073 BTC left exchanges on Monday, marking the largest single-day net outflow since March 1 and the biggest seven-month outflow reading. Santiment describes the trend as supportive for prices: coins removed from exchanges are less immediately available for selling, reducing liquid supply. With Bitcoin holding near $85,000, analysts say persistent withdrawals could signal a shift toward long-term custody rather than positioning to sell. Outflows alone are not a guarantee of further gains, but shrinking exchange balances are often cited as a constructive backdrop when demand remains firm. Market activity has also picked up. Daily trading volume rose 21% to $317 billion. Bitcoin remains about 33% below its all-time high of $126,198, set in October last year, and its market capitalization stands at $1.6 trillion. Santiment previously noted a similar pattern in Ethereum. Since June 1, ETH reserves on major exchanges have fallen 1.16%, leaving about 3.49% of total supply on large trading platforms.

Two prominent market watchers are reading Bitcoin's setup in very different ways. Trader Doctor Profit says he is rebuilding short exposure in the $86,500–$89,500 zone, arguing that persistent sell pressure is building across that range. On the other side, Ali Charts points to a strong on-chain support cluster and sees scope for a larger move higher if a key level gives way. Doctor Profit said Bitcoin was trading near $124,000 about a year ago, when he sold his holdings. He later established a sizable short position with a $60,000 downside target. He also referenced a sharp selloff on October 10, when some altcoins fell as much as 95% in a single day. He said he closed his shorts around $60,000 and switched to buying Bitcoin on the spot market. Now, Doctor Profit says he is again building shorts between $86,500 and $89,500, adding on repeated pushes into that area. He highlighted $88,000–$89,500 as the band where his largest sell orders are concentrated. Ali Charts, drawing on recent price action and on-chain metrics, described Bitcoin as having traded for roughly two weeks between $83,000 and $86,700 without breaking out above the range. He flagged $83,300–$84,600 as a major support zone, citing URPD data showing about 1.59 million BTC changing hands in that interval — a level buyers may be inclined to defend. In Ali Charts' framework, $86,700 is the pivotal breakout point. If Bitcoin clears that level, he said URPD data suggests there is no similar supply concentration until around $105,000. Ali Charts also noted increased accumulation from large holders. Since October 1, whales have added more than 14,335 BTC, which he estimated at roughly $1.22 billion. That buying, he said, aligns with the $83,300–$84,600 support area and reinforces the importance of $86,700 as the next upside trigger. In short, Ali Charts is focused on $83,300–$84,600 as support and $86,700 as the breakout level, while Doctor Profit is watching $86,500–$89,500 as a zone to add to short positions.

Santiment data shows the share of Bitcoin held on exchanges has slipped to about 6.50% of total supply. Over the same period, Bitcoin has risen more than 33% since mid-August. On Binance, the 7-day average of mid-sized inflows fell from 4,155 BTC on Aug. 16 to 2,648 BTC on Oct. 7, a drop of over 36%. Coinbase Prime saw a similar decline, with mid-sized inflows easing from 1,620 BTC to 1,370 BTC. Morgan Stanley's MSBT fund drew $7.84 million in inflows.

Bitcoin briefly fell below $84,000 after a sharp downdraft set off a wave of forced selling in leveraged crypto positions, catching many long traders off guard. The selloff developed quickly. One account said most of the damage was concentrated in roughly a 20-minute window. As prices dropped, exchanges automatically closed leveraged positions that no longer met margin requirements. These liquidations can reinforce the initial move by adding sell pressure, creating a self-reinforcing cascade. Estimates of the liquidation tally differ by source. The Block pegged long liquidations linked to the decline at about $487 million. Bitcoin.com News said the flush wiped out around $400 million in long positions over a tighter 20-minute span. Such gaps are common in fast-moving events and often reflect different data sources or measurement windows. Liquidation cascades are a recurring feature of crypto derivatives markets, where traders routinely use borrowed funds to amplify exposure. When leverage is elevated, even a relatively modest price move can trigger outsized selling, pushing prices lower and pulling more positions into liquidation before conditions stabilize. The dip under $84,000 comes as volatility remains elevated across bitcoin and the broader digital-asset market. Similar sudden drawdowns have periodically appeared in bitcoin's history, often after open interest rises in futures and perpetual swap contracts. Higher open interest can indicate heavier leveraged positioning, increasing the risk of abrupt liquidation events when sentiment turns. Neither report specified how long bitcoin traded below $84,000 or detailed subsequent recovery levels. Even so, the reported totals highlight how much leverage had built up ahead of the decline. Market impact Large-scale liquidation events can both reflect and intensify short-term volatility. When long positions are forcibly closed, the resulting sell orders can pressure spot and futures prices in rapid succession, regardless of broader fundamentals. For traders and investors, the episode underscores the risks embedded in leveraged crypto trading. Elevated liquidation totals can also weigh on sentiment, prompting both retail and institutional participants to reassess risk appetite in bitcoin and related derivatives markets. Frequently asked questions What does it mean when long positions are liquidated? A long liquidation occurs when a leveraged bullish position is automatically closed because it no longer meets margin requirements, typically after prices fall. Why do liquidation totals vary between reports? Outlets may use different time windows or aggregation methods and data sources, producing different totals for the same market move. Did bitcoin stay below $84,000? Reporting indicates the move below $84,000 was brief, though sources did not specify the duration or the extent of any rebound. Why do liquidation cascades matter for the broader market? Forced selling can amplify declines by adding downward pressure that triggers additional liquidations, increasing short-term volatility. Originally reported by AltcoinGordon, written by Ethan Mercer. Republished with permission. View the original on AltcoinGordon →