NEW YORK, Jan 29, 2026, 18:20 EST
- Bitcoin dipped under $85,000 for the first time in two months, briefly hitting $83,240.
- Traders slashed risk, wiping out over $1 billion in leveraged crypto positions.
- Analysts have pinpointed the $84,000 level as a crucial “floor,” while $70,000 is on their radar as the next downside target if that support breaks.
Bitcoin slipped below $85,000 on Thursday, plunging as much as 6.8% to $83,240—a two-month low that sparked over $1 billion in liquidations, as leveraged positions were forced closed amid the sell-off.
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The drop is significant because bitcoin is acting once more like a high-risk bet, not a safe haven, despite investors seeking refuge from volatile swings in stocks and commodities. Though crypto was promoted as an alternative hedge, it usually tumbles alongside other assets when traders scramble to reduce exposure.
All eyes are on bitcoin’s ability to hold the $84,000 mark, a key technical support level traders watch closely. Falling below that could trigger forced selling, pushing prices further down toward $70,000, analysts warn.
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Yahoo Finance reported bitcoin dropping to a 2026 low around $85,200, coinciding with gold’s pullback and a slump in U.S. tech stocks—factors that squeezed speculative positions.
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Crypto tumbled amid a broader sell-off on Wall Street after Microsoft shares plunged 10%, marking their steepest one-day decline since March 2020, dragging the Nasdaq down. “Microsoft disappointed and there are some genuine concerns that AI investments will eat the software companies’ lunches,” said John Praveen, managing director at Paleo Leon.
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Gold, long seen as the safest hedge by many investors, took a sharp tumble. It soared to a record $5,594.82 an ounce before plunging over 5% to a session low of $5,109.62. Traders pointed to profit-taking after the rapid surge. “We are seeing a dramatic sell-off after precious metals made new recent all-time highs,” said David Meger, director of metals trading at High Ridge Futures.
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Matt Mena, crypto research strategist at 21Shares, told CoinDesk—via a Futu repost—that holding above $84,000 is “critical.” Should that level break, he pointed to $80,000 and then $75,000 as the next key supports. Still, Mena called current prices a “compelling entry point” and maintains his bet that bitcoin will hit $100,000 by the end of Q1.
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John Glover, chief investment officer at bitcoin lender Ledn, told the same report the selloff is part of a wider pullback from October’s record highs and could push BTC down to $71,000. He noted investors are turning to gold and the Swiss franc, adding that bitcoin is “still being treated as a risk asset” instead of “digital gold.”
Russell Thompson, chief investment officer at Hilbert Group, said key downside levels have already been breached. “The technical levels have all been taken out on the downside, and I don’t see much support here for bitcoin,” he said, adding he sees scope for $70,000.
The next move won’t be straightforward. Bitcoin could find its footing fast if volatility in U.S. stocks and metals eases and the current leverage purge finishes. That’s how it’s bounced back after previous crashes. But if the $84,000 support breaks decisively, traders warn the market could spiral down again, driven by forced selling.
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