Crypto liquidations hit $550M as Bitcoin price dips below $84K

Bitcoin's value dipped 2.3% within two hours due to concerns over leveraged BTC short positions on Hyperliquid. The cryptocurrency fell below $84,000 on Wednesday as substantial liquidations of crypto long positions were triggered, resulting in over $500 million in losses. TradingView data indicated a 2.3% decline in Bitcoin's price over two hourly candles.

This decline followed a thickening of ask liquidity on exchange order books, preventing a rise above the $86,500 mark on Tuesday. Over the previous 24 hours, crypto long liquidations totaled $550 million, according to CoinGlass data.

Earlier in the day, four wallets utilized stablecoin USD Coin (USDC) to open shorts on 148.49 BTC using 40x leverage on Hyperliquid, as onchain data from Lookonchain and others revealed. Following the long position flush, open interest (OI) began to rebound across the 21 exchanges tracked by CoinGlass within six hours. OI rose from approximately $54.2 billion to $55.3 billion between 4 a.m. and 10 a.m. UTC.

Despite trading 1.8% lower for the day, Bitcoin maintained nearby support near its 21-day simple moving average (SMA) at $83,850. This level is considered a line in the sand for bulls on lower time frames. Previously, Cointelegraph reported that this price point serves as a barrier for bulls on shorter time frames.

Below this trend line, $82,500 remains a crucial level for Bitcoin’s broader uptrend. It is part of an inverse head-and-shoulders reversal pattern, which is still unfolding on the weekly chart. Price last approached this level on September 28.

Trader and analyst Rekt Capital noted that a daily candle closing above $86,700 would be necessary to sustain a bullish setup. As of Tuesday, Bitcoin had not yet reached this lower timeframe confirmation required for continuation.