Bitcoin (BTC) faced renewed selling pressure on Monday, falling to around $86,000 after a series of liquidation events wiped out hundreds of millions of dollars in leveraged positions.
The decline deepened over the weekend, briefly pushing BTC below $85,500 amid broader risk sentiment and growing macroeconomic uncertainty.
BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview
Liquidation wave accelerates downward trend
Data from multiple exchanges shows that more than $640 million worth of leveraged positions were wiped out within 24 hours, leading to a sharp decline among Bitcoin’s recent trading channel.
The pullback followed a major breakout liquidation cluster below the $90,000 level, quickly thinning liquidity and intensifying the move towards the mid-$80,000s.
On the charts, Bitcoin lost short-term structural support after falling below the lower bound of its ascending channel. Indicators such as the Chaikin Money Flow (CMF) and the monthly MACD have weakened, with the latter showing a bearish crossover that historically accompanies extended downturns.
Analysts say support is now around $84,500-$84,800, with deeper levels around $82,000 and $80,500 if selling pressure continues.
Altcoins reflected the volatility, with Ethereum falling to around $2,800, while Solana, XRP, Binance Coin and Dogecoin posted losses between 5% and 7%. The total cryptocurrency market cap fell nearly 5% to $2.95 trillion.
Bitcoin ETF outflows and macro signals add pressure
The correction comes as Bitcoin spot ETFs experienced a significant outflow in November. In the past month, approximately $3.5 billion exited Bitcoin ETF products, with major issuers experiencing significant withdrawals.
Analysts attribute the trend to portfolio rebalancing and profit-taking, rather than a broad exit from digital assets; However, the timing has increased pressure on an already fragile market.
Global macro developments have also determined sentiment. The Bank of Japan signals a possible rate hike in December, adding to the volatility of risky assets.
In the US, traders are awaiting new guidance from the Federal Reserve following the end of quantitative tightening. A shift to simpler policies could help stabilize liquidity conditions, but uncertainty remains ahead of upcoming FOMC communications.
The market awaits instructions from the Fed while key levels remain in place
Despite the downward momentum, some analysts argue that the broader cycle remains intact, calling the current pullback a shakeout rather than the start of a long-term 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 could open the way to the low $80,000s.
Cover image of ChatGPT, BTCUSD chart from Tradingview
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