Bitcoin dropped to its lowest level in over two months, briefly testing support at $84,000 amid broader market risk aversion. Despite a $360 million futures liquidation, demand for bullish margin positions hit a two-year high. Analysts point to a structural model suggesting Bitcoin will likely stay above $100,000 until late 2027, even as current derivative data reflects pronounced market caution.
Bitcoin briefly retested the $84,000 support zone on Thursday, its lowest point in more than two months. The decline coincided with a broader shift toward risk aversion after Microsoft shares fell sharply.
Market analysts monitoring structural valuation models continue to point out a positive fundamental outlook. They urge focusing on long-term metrics, as analysis indicates a steadily improving price floor.
An updated Bitcoin power law model based on 52-week lows identified a crucial support area around $60,000. The model suggests Bitcoin will likely stay above $100,000 until at least the second half of 2027.
Derivative data shows the demand for bullish margin positions reached a two-year high despite a 26% price drop in ninety days. This sparked concerns about liquidation risks after approximately $360 million in BTC futures positions were liquidated.
Margin longs on Bitfinex reached 83,933 BTC, the highest level since November 2023. The notional value of this exposure is about $7.3 billion.
The Bitcoin futures market reflects caution, as monthly contracts no longer trade at the elevated premiums seen during past bullish periods. Macroeconomic uncertainty driven by doubts about artificial intelligence value contributed to the market’s unease.
