BTC is crashing again: Bitcoin price falls below $87,000 today as $200 million wiped out in minutes

In a shocking turn of events, Bitcoin (BTC) has experienced another brutal sell-off, plummeting below the $87,000 mark and triggering massive liquidations across the crypto market. Data from leading analytics platforms reveals that nearly $200 million in leveraged long positions were wiped out in mere minutes, sending shockwaves through the trading community. This comes hot on the heels of BTC’s inability to sustain levels above $90,000, pulling major altcoins down with it.

If you’re a crypto trader or investor, you’re probably glued to your charts right now. Is this the start of a deeper correction, or just a temporary shakeout? In this in-depth analysis, we’ll break down what happened, why it happened, the broader market impact, and key levels to watch next. Stay tuned for actionable insights to navigate this volatile .

What Exactly Happened in This BTC Crash?

The drama unfolded earlier today when BTC, which had been teasing a breakout above $90,000, suddenly reversed course. Prices cascaded from highs near $91,000 to lows below $87,000 in a flash crash-like manner. According to liquidation heatmaps, over $200 million in longs were obliterated, primarily from high-leverage perpetual futures on exchanges like Binance and Bybit.

• Peak Liquidation Event: $198.7 million in longs liquidated within 30 minutes.
• BTC Price Action: -4.2% drop in under an hour.
• Market Cap Impact: Total crypto market shed over $150 billion temporarily.

This wasn’t an isolated incident. Overleveraged traders betting on continued upside got caught off-guard by a cascade of stop-loss triggers, amplifying the downside momentum. Volume spiked dramatically, with sell pressure overwhelming buyers at key resistance-turned-support zones.

Why Did Bitcoin Fail to Hold $90,000?

Several factors converged to spark this :

1. Overextended Rally: BTC had surged over 20% in the past week on ETF inflows and institutional hype, but RSI indicators flashed overbought signals above 75.
2. Macro Headwinds: Rising U.S. Treasury yields and hawkish Fed comments pressured risk assets, with Bitcoin correlating strongly to tech stocks like Nasdaq.
3. Leverage Flush: Open interest in BTC futures hit record highs, setting the stage for a funding rate squeeze and violent deleveraging.
4. Technical Breakdown: Failure to close above the $90K-$92K supply zone led to a rejection, with bears targeting psychological support at $85,000.

Whale activity also played a role—on-chain data shows large holders offloading 5,000+ BTC in the hours leading up to the drop, adding fuel to the fire.

Altcoins Take a Beating: Ripple Effects Across Crypto

The didn’t spare altcoins. Ethereum (ETH) dropped 5.5% to below $3,200, while Solana (SOL) and other layer-1s shed 7-10%. Meme coins like DOGE and PEPE saw even steeper declines, with some erasing 15% in minutes.

The total crypto liquidation tally exceeded $285 million, underscoring how interconnected the market has become. Traders holding altcoin longs on leverage faced margin calls en masse, creating a domino effect.

Critical Support Levels: Will BTC Hold or Break?

As BTC hovers around $86,500-$87,000, all eyes are on these pivotal levels:

• Immediate Support: $85,000 – 50-day EMA and prior swing low. A hold here could spark a rebound to $89K.
• Strong Support: $82,000-$84,000 – Fibonacci 0.618 retracement from recent ATH.
• Breakdown Zone: Below $80,000 – Opens door to $75K, signaling deeper correction.
• Resistance Overhead: $90,000 – Needs decisive close above for bullish reversal.

RSI is now neutral at 45, and MACD shows bearish divergence easing. A bounce from $85K could target $88,500, but volume confirmation is key.

The Dangers of Leveraged Trading in Crypto

This event is a stark reminder of the perils of high-leverage trading. With platforms offering up to 125x leverage, small moves can lead to catastrophic losses. Here’s why caution is crucial:

• Cascade Liquidations: Forced sells amplify volatility.
• Funding Rate Traps: Positive rates lure longs into overexposure.
• Emotional Trading: FOMO drives reckless positions.

Pro Tip: Stick to 2-5x leverage max, use stop-losses religiously, and diversify. Tools like position calculators can help manage risk effectively.

Market Sentiment and What’s Next for Bitcoin

Fear & Greed Index has flipped to ‘Fear’ at 35, down from ‘Greed’ last week. Social sentiment on platforms like Twitter shows capitulation vibes, often a contrarian buy signal. Institutional flows remain positive—spot BTC ETFs saw $500M inflows this month despite the dip.

Looking ahead:

• Bull Case: Hold $85K, Fed rate cut expectations, halving cycle momentum → New ATH by Q1 2025.
• Bear Case: Break $80K on macro selloff → Test $70K range.

Bitcoin’s long-term uptrend intact above $60K rising trendline. Patient HODLers will weather this storm.

Final Thoughts: Navigate the BTC Crash Wisely

The saga highlights crypto’s wild nature, but also its resilience. While <$200 million wiped out> stings, it clears weak hands for stronger bulls. Monitor on-chain metrics, U.S. economic data, and ETF flows closely.

Whether you’re scaling in on dips or waiting for confirmation, risk management is your best friend. What’s your take on this ? Share in the comments below!

FAQ: Bitcoin Crash Edition

Is Bitcoin crashing for good?

No, corrections are healthy. BTC has survived worse and rallied higher.

What caused the $200M liquidations?

Overleveraged longs hit by a sharp selloff after $90K rejection.

Should I buy the BTC dip?

DCA into support levels if you’re long-term bullish, but wait for stabilization.

Will altcoins recover?

Yes, once BTC stabilizes—altseason often follows BTC consolidation.