Bitcoin fell below $84,000 on Wednesday, triggering $280 million in long liquidations over four hours as the world’s largest cryptocurrency rejected near $87,000 and tested fresh local lows around Wall Street open.

The price correction unfolded amid negative spot demand. CryptoQuant, an onchain analytics platform, reported that cumulative 30-day apparent spot demand measured negative 180,000 BTC as of Tuesday, with negative values indicating supply outpacing demand. Despite the weakness, CryptoQuant noted a slight improvement: “The negative value of $BTC spot demand has narrowed slightly, while futures demand continues to increase. Total demand is also showing a slight recovery compared to the previous day.”

Liquidity thickened on both sides of the spot price as traders attempted to force a breakout from the sideways range. Bitcoin gained over 35 percent since the week beginning August 17, but the rally has stalled near resistance.

Support Levels and Next Resistance

Rekt Capital, a trader and analyst, flagged $82,000 as a critical support level for continued bullish momentum. “For bullish continuation and to avoid reverting back into the $60k-$80k Range, Bitcoin would need to stay above or at minimum successfully retest ~$82k on any future dip,” Rekt Capital said.

Analysis highlighted $90,000 as the likely next consolidation area due to increased profit-taking likelihood. US spot Bitcoin ETFs held an aggregate cost basis just below $86,000, placing institutional buyers near current price levels.

Spot Demand Weakness Persists

Interest in Bitcoin remains largely confined to derivatives markets rather than spot markets. CryptoQuant indicated that a shift toward positive demand could signal a more significant rally: “Although total demand remains in negative territory, the trend is shifting toward the positive. If the current momentum persists, spot demand will also flip to positive. That moment will mark the beginning of a more significant rally.”

The liquidation event underscored the tension between institutional accumulation via spot ETFs and the ongoing weakness in spot market demand. Traders holding leveraged long positions faced forced exits as Bitcoin tested support levels, compressing the price range further.