Bitcoin experienced a sharp decline overnight, briefly dropping under $82,000 before rebounding toward $83,200, as a significant liquidation event shook cryptocurrency markets in anticipation of the upcoming U.S. inflation report.
Intense Liquidations Hit Crypto Markets
On Binance, Bitcoin touched a 24-hour low of $80,962.52, while other exchanges reported slightly higher figures. Despite a partial recovery above $83,000, the market’s response highlighted its ongoing sensitivity to large volumes of forced selling.
Total crypto liquidations over the past day reached approximately $771 million, with $685.6 million coming from long positions. Nearly 89% of all liquidations impacted traders who had bet on price increases, suggesting a predominance of bullish sentiment prior to the sell-off.
Long positions accounted for nearly 89% of liquidations, indicating that traders who anticipated further gains faced the most significant losses overnight as prices fell sharply across major tokens including Bitcoin, Ethereum, Solana, and XRP.
As Bitcoin slipped from near $84,200 down to $81,382 in late trading, altcoins also registered notable declines, mirroring the pressure from the closure of leveraged positions across several major exchanges.
Factors Behind the Price Drop
Dominick John, an analyst at Zeus Research, pointed to multiple factors driving Bitcoin’s retreat. John cited macroeconomic headwinds, cooling appetite among institutional investors, and cautious moves ahead of the U.S. inflation data release as leading reasons for the latest weakness in the crypto market.
This move downward follows last week’s significant outflows from U.S. Bitcoin spot ETFs, which saw $681 million withdrawn—the largest weekly outflow since late June.
With these developments, the $80,000–$82,000 support zone for Bitcoin has come back into focus, raising questions among traders about whether this region can hold amid ongoing volatility.
Key Technical Levels and Market Sentiment
An analysis from Glassnode on October 8 identified substantial buy orders clustered around $81,000, indicating a potential area of demand that coincided with the recent bounce. Glassnode’s data suggest that the market may be watching this price level closely if further declines occur.
Analysis from FxPro previously warned that sustained losses below $83,000 could leave Bitcoin vulnerable to deeper declines toward $80,000 if downward momentum increases. QCP Capital offered a similar perspective, describing the $80,000-$82,000 area as a possible buying range and cautioning against interpreting it as the start of a major correction unless support is lost decisively.
A renewed fall below $81,000 could put the psychologically important $80,000 threshold under further stress, while a strong move above $84,000 might indicate that the bulk of forced liquidations has passed and selling pressure could subside.
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