Bitcoin (BTC) slipped under the key $85,000 support level on Thursday, extending a week-long selloff and reviving fears that the market may be entering a more protracted correction.
The cryptocurrency briefly fell to $84,500, its lowest price in nearly three weeks, before stabilizing, erasing an earlier rally that had pushed prices close to $89,500 earlier in the day.
The downturn rippled across the broader market.
Ether (ETH) dropped below $2,800, while Solana (SOL) fell more than 4%, hitting its weakest level since April.
Altcoins sold off more sharply, with ADA, DOGE, and SUI sliding over 5%, far exceeding Bitcoin’s decline.
Derivatives markets reflected the pressure.
Roughly $550 million in leveraged positions were liquidated over the past 24 hours, according to CoinGlass, flushing out both longs and shorts as traders unwound exposure across major assets.
Key Support Level Breaks
The $85,000 zone had served as an important technical floor throughout recent sessions.
Nexo's Iliya Kalchev, in a note to Yellow.com, said that recent moves continue to reflect thin liquidity and options-related flows rather than a change in core demand.
"Structural resistance between $93,000 and $120,000 is still shaping the upper bound of the tape, while the True Market Mean near $81,300 provides a consistent lower anchor," he said.
Also Read: MSCI Rule Change Could Force $15B In Crypto-Linked Stock Selling By Feb. 2026
Perpetual swap funding rates across several altcoins also turned negative, a sign short sellers are paying longs to keep positions open, indicating a broadly risk-off stance among traders.
Bloomberg Analyst Warns Of Possible Return To $10,000
The market weakness coincides with a stark warning from Bloomberg Intelligence analyst Mike McGlone, who said Bitcoin could ultimately fall much further than current levels.
McGlone argued that many of the catalysts behind Bitcoin’s past rallies, including ETF approvals, political support, and mainstream adoption, have already played out.
“Much of what the market had been looking forward to has occurred,” McGlone said, adding that Bitcoin’s expanding competition from the broader crypto ecosystem weakens its scarcity argument.
He pointed to the proliferation of digital assets, noting that “there were zero cryptocurrencies in 2009, and now there are millions.”
His view contrasts sharply with long-term bulls such as Michael Saylor but echoes concerns that the current cycle may be running out of momentum. “Own it or wear it — I expect Bitcoin to revert back toward $10,000,” McGlone said.
AI Models Also Flag Downside Risk
ChatGPT and Grok, two widely used AI models, offered similarly cautious assessments when asked about downside probability.
ChatGPT described the market as showing “late-cycle characteristics,” arguing that improved institutional access and regulatory clarity may indicate most of the near-term upside has been priced in.
It added that large drawdowns remain consistent with Bitcoin’s historical behavior.
Grok delivered a blunt view, saying Bitcoin’s volatility and heavy reliance on narrative leave it vulnerable once sentiment becomes too one-sided. “When everyone’s already bullish, there’s no one left to buy, that’s when gravity kicks in.”
At the time of writing, Bitcoin was trading near $$85,610, down roughly 7% over the past week.
Until the market can reclaim higher levels, analysts agree that the path of least resistance remains to the downside.
Read Next: BNB Chain Expands Stablecoin Ecosystem As United Stables Launches $U
