Bitcoin Price Dips Below $84K Amid Leverage Unwinds and Spot Demand Woes

Bitcoin (BTC) experienced significant selling pressure on Wednesday after failing to break above $87,000. The price dipped below $84,000 around the Wall Street open, triggering a sharp wave of leverage unwinds. TradingView data showed that BTC/USD lost momentum after a second attempt to break higher stalled.

Liquidations totaled about $280 million across roughly four hours, indicating that derivatives positioning was vulnerable when support failed. Analysts are watching $82,000 as a level bulls may need to defend to avoid a deeper retracement.

CryptoQuant's data shows that spot demand on spot markets remains negative on a rolling 30-day basis, and traders are waiting to see if the market can absorb selling pressure. The trend in spot demand is improving rather than deteriorating, with CryptoQuant noting that if momentum continues, spot demand could eventually 'flip to positive.'

The trading range has implications for certain investor cohorts, particularly U.S. spot Bitcoin exchange-traded funds (ETFs), whose aggregate cost basis is just below $86,000.