Bitcoin Drops Below $84K as $550M in Crypto Longs Liquidated

Bitcoin slipped below $84,000 on Wednesday in a sharp two-hour decline that triggered over $550 million in crypto long liquidations, according to data from CoinGlass. BTC/USD fell as much as 2.3% over two consecutive hourly candles, briefly touching $83,560 before stabilizing near the $84,000 level. The flash downside came amid suspicion surrounding four wallets that used USDC to open 40x-leveraged short positions on 148.49 BTC via Hyperliquid immediately before the drop, as flagged by onchain analytics firm Lookonchain.

Despite the move, Bitcoin preserved nearby technical support at its 21-day simple moving average (SMA) near $83,850, a level analysts view as a critical line for bulls on lower time frames. Below that, $82,500 remains a decisive area tied to an inverse head-and-shoulders reversal pattern still unfolding on the weekly chart. Overhead ask liquidity had thickened on exchange order books on Tuesday, preventing spot price from breaking past $86,500 and setting the stage for the overnight flush.

Open interest data from CoinGlass showed a swift rebound across 21 exchanges following the liquidation event, climbing from approximately $54.2 billion to $55.3 billion over six hours between 4 a.m. and 10 a.m. UTC. This recovery suggests traders were comfortable increasing BTC exposure at local lows. Analyst Rekt Capital noted that a daily or three-day candle close above $86,700 is necessary to confirm continued upside, adding that Bitcoin currently lacks the lower-timeframe confirmation required for bullish continuation.