Bitcoin fell sharply on Friday, slipping below $90,000 after a wave of leveraged liquidations hit the market. Selling pressure increased as Bitcoin once again failed to break above a key resistance zone between $92,000 and $94,000, a level it has tested several times this week before pulling back.
More than $200 million in leveraged long positions were liquidated, speeding up the decline. Market sentiment weakened as fear levels rose, and volatility increased across major exchanges.
Support for Bitcoin is currently seen around $89,200, with stronger buying expected near $88,000. A drop below that area could deepen the downtrend. If the price manages to bounce from support, it may attempt another move toward $90,000, though a full recovery would require a sustained break above $94,000. Clearing that level could open the path toward the next target near $100,000.
The correction comes as other major cryptocurrencies also pull back from recent highs. Ethereum and several large-cap tokens have shown slowing momentum after briefly entering overbought levels earlier in the week. The market may see clearer direction in the coming days as Bitcoin tests whether support in the mid-$80,000 range can hold against continued selling pressure.
Analyst Ash Crypto said the recent drop in Bitcoin from $126,000 to $80,000 has raised concerns about unusual market behavior. The October 10 flash crash, which erased about $19 billion and became one of the largest liquidation events in crypto history, Bitcoin has struggled to recover.
According to his view, U.S. stocks have risen roughly 8% since that day and many have reached new all-time highs, while Bitcoin remains down around 29%. He said that every short-term price increase has been met with strong selling, and that nearly $500 million in liquidations appears in the market on many days.
He argued that if the decline were caused only by leverage, the market would normally rebound quickly. Instead, Bitcoin has kept falling without a significant recovery, which he believes shows that large players may be influencing price movements and triggering liquidations on both long and short positions.
The analyst is hoping for a stronger outlook in the first half of 2026, supported by possible rate cuts, improving liquidity conditions and the end of quantitative tightening.
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