Bitcoin drops below $85,000 as analyst warns of possible return to $10,000

Source: Yellow Original Title: Bitcoin falls below $85,000 while analyst says reaching $10,000 is still possible

Original Link: Bitcoin (BTC) fell below the important support level of $85,000 on Thursday, extending a week-long liquidation and reigniting fears that the market may be entering a more prolonged correction.

The cryptocurrency briefly dropped 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 decline spread to the broader market. Ether (ETH) fell below $2,800, while Solana (SOL) retreated more than 4%, reaching its weakest level since April.

Altcoins experienced even sharper sell-offs, with ADA, DOGE, and SUI dropping more than 5%, significantly outpacing Bitcoin’s decline.

Derivatives markets reflected the pressure

Approximately $550 million in leveraged positions were liquidated in the last 24 hours, forcing out both longs and shorts as traders reduced exposure to major assets.

A key support level breaks

The $85,000 zone had served as a significant technical floor during recent sessions.

Iliya Kalchev, from Nexo, noted that recent movements continue to reflect reduced liquidity and options-related flows rather than a change in fundamental demand.

“Structural resistance between $93,000 and $120,000 remains the upper boundary of the range, while the True Market Mean near $81,300 provides a consistent lower anchor,” he said.

Funding rates for perpetual swaps of several altcoins also turned negative, a sign that short sellers are paying longs to keep their positions open, indicating a broadly risk-averse stance among traders.

Analyst warns of possible return to $10,000

Market weakness coincides with a warning from Bloomberg Intelligence analyst Mike McGlone, who pointed out that Bitcoin could ultimately fall much further from current levels.

McGlone argued that many of the catalysts behind previous Bitcoin rallies—including ETF approvals, political support, and widespread adoption—have already materialized.

“Much of what the market expected has already happened,” McGlone said, adding that increasing competition from the crypto ecosystem in general weakens Bitcoin’s scarcity argument.

He pointed to the proliferation of digital assets, noting that “in 2009 there were zero cryptocurrencies, and now there are millions.”

His outlook sharply contrasts with long-term bulls like Michael Saylor but aligns with concerns that the current cycle may be losing momentum. “Hold on or suffer — I expect Bitcoin to retreat back toward $10,000,” McGlone stated.

AI models also indicate bearish risk

ChatGPT and Grok, two widely used AI models, offered equally cautious assessments when asked about the likelihood of a fall.

ChatGPT described the market as showing “end-of-cycle characteristics,” arguing that increased institutional access and clearer regulation may indicate that much of the short-term bullish potential is already priced in.

It added that sharp declines remain consistent with Bitcoin’s historical behavior.

Grok provided a blunt view, noting that Bitcoin’s volatility and strong narrative dependence leave it vulnerable once sentiment becomes too one-sided. “When everyone is bullish, there’s no one left to buy; that’s when gravity takes over.”

Current outlook

At the time of writing, Bitcoin was trading near $85,610, down approximately 7% over the past week.

Until the market recovers to higher levels, analysts agree that the path of least resistance remains downward.