Bitcoin (BTC) Price Plunges Below $85,000, Triggering $116 Million Long Liquidation

Bitcoin (BTC) fell below the critical $85,000 support level on Friday, hitting a low of $84,200 as selling pressure intensified.

Bitcoin (BTC) fell below the critical $85,000 support level on Friday, sparking a round of market-wide liquidations that saw $400 million wiped out, according to Antione Courcelle, Ancien Trader at BNP Paribas.

At its lowest point, BTC dropped to $84,200. As of press time, it remains under pressure, reflecting broader market weakness and increasing liquidation risks.

Bitcoin Long Positions Liquidated as Selling Pressure Triggers $400 Million in Liquidations

A substantial portion of the liquidated positions was linked to Bitcoin longs, with Ancien Trader at BNP Paribas estimating a total of $116 million wiped out from these positions.

This suggests that traders who had bet on the continuation of Bitcoin’s uptrend were forced to unwind their trades as selling pressure emerged, leading to a cascade of liquidations.

Furthermore, on Thursday, wallets linked to the U.S. government undertook a transfer of 97 BTC and 884 ETH, which sparked speculation that a sell-off of the federal government’s cryptocurrency holdings could be unfolding.

However, considering that Trump's executive order on March 6 mandated federal agencies to report their cryptocurrency holdings to the Secretary of the Treasury within 30 days, this transaction seems to align with the administration's initiative to consolidate its crypto assets.

According to the fact sheet, the executive order directs each agency to submit a report detailing its cryptocurrency holdings, transactions, and operations within 30 days of the order's issuance.

Therefore, this suggests that the $10.3 million in BTC and ETH transfers may be part of a broader asset consolidation initiative by the U.S. government, rather than an immediate liquidation event.

Peter Brandt Predicts $65,635 Bearish Target After Bear Wedge Breakdown

Veteran trader Peter Brandt has issued a stark bearish warning for Bitcoin, citing a bear wedge breakdown with a potential downside target of $65,635.

His technical analysis, shared on X, predicts further weakness after a double top formation usually leads to a 1:2 price move from the high to the low.

"Don't shoot the messenger. Just reporting on what the chart says until it says something different. Bear wedge completed with 2X target from the double top at 65,635,"

Peter Brandt, March 28, 2025

Brandt's analysis showcases Bitcoin's rejection at $92,070, followed by a series of lower highs and a tightening wedge pattern, ultimately leading to a breakdown below the $85,285 support.

This breakdown confirms the bearish trajectory, reinforcing concerns of a deeper correction.

If BTC continues on this path, a retest of $75,000 could come before reaching the projected downside of $65,635.

As selling pressure mounts, traders remain cautious about Bitcoin's next moves. Whether bulls can reclaim key levels or if further downside awaits will largely depend on macroeconomic developments and investor sentiment in the coming days.

Frequently Asked Questions (FAQs)

1. Why did Bitcoin price drop below $85,000?

2. What is Peter Brandt's Bitcoin price prediction?

3. How much was liquidated in Bitcoin long positions?