Bitcoin held above the mid-$80,000 area this week as buyers stepped in near key support and prevented a sharper breakdown. Analysts highlight that around 22% of the supply now sits below its purchase price and argue that a sustained recovery likely depends on stronger liquidity, tracked through on-chain metrics like the 90‑day realized profit/loss ratio. Exchange inflows remain muted and derivatives positioning points to the risk of a brief liquidity grab toward the low-$90,000s.

On Thursday, Bitcoin fell to its lowest level in over two months near $84,000 as risk appetite waned after Microsoft shares dropped 11%. Despite a 26% drawdown over 90 days and $360 million in BTC futures liquidations, Bitfinex margin longs climbed to 83,933 BTC, the highest since November 2023. Arbitrage and funding dynamics suggest the jump in longs is not a straightforward bullish signal.

Bitcoin extended its weekly decline on Thursday, sliding below the closely watched $85,000 mark even as US lawmakers advanced the CLARITY Act crypto market structure bill. During a sharp sell‑off, BTC fell by about $2,700, helping trigger roughly $803 million in crypto liquidations over 24 hours and leaving the price hovering near key technical support levels. Analysts warn that losing the $86,000 area on higher time frames could open the door to a deeper move toward approximately $82,500.

Bitcoin fell to about $85,289 on Thursday, extending recent volatility even as new structural drivers emerge around regulation, on-chain activity, and corporate demand. A US Senate Agriculture Committee bill advanced by a 12-11 vote, Citrea’s Bitcoin ZK-rollup mainnet went live, and Metaplanet approved a $137 million fundraising plan to buy more BTC, all while price tests support near $83,000 inside a descending channel. These forces could influence Bitcoin’s long-term supply-demand balance despite short-term bearish pressure.

Bitcoin fell to $83,600 during the New York session, pressing the lower bound of a 10‑week consolidation defined since Nov. 17, 2025. CryptoQuant reported taker sell volume of roughly $4.1 billion over two hours, and about $570 million in long positions were liquidated as price slipped from $88,000. Analysts describe the move as a futures‑driven correction rather than a structural breakdown.

Bitcoin traded in a tight range between about $88,000 and $89,500 this week and was last changing hands near $83,821, marking a 6.22% daily drop and an overall decline of just over 8% amid geopolitical uncertainty. On Sunday, Santiment reported that wallets holding at least 1,000 BTC added 104,340 coins, a 1.5% increase, as million‑dollar‑plus transactions rebounded to two‑month highs and derivatives data pointed to aggressive long positioning.

On-chain analytics firm Glassnode has reported that past sustained Bitcoin uptrends have generally appeared only when a liquidity gauge called the 90‑day Realized Profit/Loss Ratio stayed above a key level. The metric, which compares realized gains to realized losses, peaked near 20 in the second half of 2025 but has since dropped to below 2, while Bitcoin is trading around $87,800 after a recent pullback. Glassnode's data suggests a renewed rally may require this ratio to climb back above 5 and hold there, although the indicator is still trending downward.

On Thursday, Bitcoin plunged from levels near $90,600 to around $84,635, briefly breaking below the $85,000 area. The sharp move triggered liquidations of nearly $800 million in leveraged positions over 24 hours, including about $301.15 million in longs wiped out in a single hour. One BTC-USD position worth $31.64 million on Hyperliquid was the day's largest forced closure.