Core Insights - Bitcoin (BTC) experienced significant losses, breaking below the critical support level of $85,000, reaching a low of $84,500 before a slight rebound [1] - The broader cryptocurrency market declined, with Ether (ETH) falling under $2,800 and Solana (SOL) dropping to below $120, marking its lowest price since April [1] Market Dynamics - Altcoins such as Cardano (ADA), Dogecoin (DOGE), and SUI saw declines exceeding 5%, surpassing Bitcoin's daily drop of 1.6% [2] - The volatility in prices led to $550 million in liquidations in derivatives markets over the past 24 hours, affecting both short and long leveraged positions [2] Technical Analysis - The $85,000 support level had been significant in recent weeks, with BTC finding buyers at this level multiple times; analysts warn that losing this level could lead to a deeper correction towards $80,000 [3] - Perpetual swap markets indicate negative funding rates for many altcoins, suggesting that traders are cautious and risk-averse [4] Market Behavior - The lack of a spike in trading volume during the selloff indicates an "orderly deleveraging" rather than panic selling, suggesting that sellers are exhausted rather than new supply entering the market [5]