Crypto losses accelerated Thursday afternoon as bitcoin BTC$85,577.29 broke below the key $85,000 support level, dipping to $84,500 — its weakest price in nearly three weeks — before rebounding slightly.

The move erased BTC’s morning rally to $89,500 and dragged the broader crypto market lower. Ether ETH$2,826.58 fell under $2,800, down 1.1% in the past 24 hours, while Solana’s SOL dropped 4% to below $120, its lowest since April.

Altcoins led the rout, with ADA$0.3543, DOGE$0.1231, and SUI plunging more than 5%, outpacing bitcoin’s 1.6% daily drop.

The wild price swings across the board triggered $550 million in liquidations over the past 24 hours on derivatives markets, CoinGlass data shows, flushing out both short and long leveraged trading positions.

The $85,000 level had served as a key area of support in recent weeks, with BTC finding buyers there multiple times. Analysts at AmberData, a crypto analytics firm, described this level as "crucial," and BTC losing it decisively could open the door to a deeper correction toward $80,000, analysts at crypto analytics firm AmberData warned.

A check on perpetual swaps markets shows that funding rates for many altcoins' have turned negative, CoinGlass data shows, meaning that short positions, seeking to profit from lower prices, are paying long positions a fee to keep their positions open. That signals traders remain cautious and risk-off.

Still, the absence of a spike in trading volume suggests the market is undergoing a "orderly deleveraging," rather than panic selling, AmberData analysts said.

"Lack of volume spike on selloff indicates sellers exhausted rather than fresh supply emerging," they said.