Bitcoin (BTC) faced renewed selling pressure on Monday, dropping to around $86,000 after a series of liquidation events erased hundreds of millions of dollars in leveraged positions.
The decline deepened over the weekend, pushing BTC briefly under $85,500 amid broader risk-off sentiment and growing macroeconomic uncertainty.
Liquidation Wave Accelerates Downtrend
Data from multiple exchanges shows that more than $640 million worth of leveraged positions were wiped out within 24 hours, triggering a sharp breakdown below Bitcoin’s recent trading channel.
The pullback followed a breach of a major liquidation cluster under the $90,000 level, which rapidly thinned liquidity and intensified the move toward the mid-$80,000 region.
On the charts, Bitcoin lost short-term structural support after falling below the lower boundary of its ascending channel. Indicators such as the Chaikin Money Flow (CMF) and the monthly MACD have weakened, with the latter printing a bearish crossover historically associated with extended downturns.
Analysts say support now lies around $84,500–$84,800, with deeper levels near $82,000 and $80,500 if selling pressure continues.
Altcoins reflected the volatility, with Ethereum dropping to around $2,800 while Solana, XRP, Binance Coin, and Dogecoin recorded losses between 5% and 7%. The total crypto market cap declined by nearly 5% to $2.95 trillion.
Bitcoin ETF Outflows and Macro Signals Add Pressure
The correction comes as Bitcoin spot ETFs recorded significant outflows through November. The month saw about $3.5 billion leave Bitcoin ETF products, with major issuers facing sizeable withdrawals.
Analysts attribute the trend to portfolio rebalancing and profit-taking, rather than a broad exit from digital assets; however, the timing has added pressure to an already fragile market.
Global macro developments have also shaped sentiment. The Bank of Japan is signaling a possible rate hike in December, contributing to volatility across risk assets.
In the US, traders are awaiting new guidance from the Federal Reserve after the end of Quantitative Tightening. A shift toward easier policy could help stabilize liquidity conditions, but uncertainty remains ahead of upcoming FOMC communications.
Market Awaits Fed Direction as Key Levels Hold
Despite the downside momentum, some analysts argue that the broader cycle remains intact, calling the current pullback a shakeout rather than the start of a prolonged bear phase.
For now, BTC’s ability to hold the $86,000–$87,000 zone will be closely watched. A recovery above $89,000 could ease immediate pressure, while a break below support may open the path toward the low-$80,000 range.
Cover image from ChatGPT, BTCUSD chart from Tradingview
