Bitcoin falls below $86,000, plunging into bear market panic! 220,000 people suffer liquidation, $814 million evaporates overnight, the next critical point to watch is here

Recently, the global financial market has once again stirred up huge waves, with the cryptocurrency market becoming the epicenter! Bitcoin (BTC) has fallen below $87,000 for the first time since April, plummeting over 5% in a single day, while Ethereum also dropped sharply by 6.37%, falling below the $2,800 mark. Even more astonishingly, over 220,000 investors were liquidated within 24 hours across the network, with a staggering $814 million evaporating instantly, causing market panic to escalate rapidly. ▌Tech stocks and positive employment data fail to counter market concerns, Bitcoin accelerates its decline Despite NVIDIA reporting impressive earnings, with third-quarter revenue soaring to $57 billion, and CEO Jensen Huang personally refuting the "AI bubble theory," leading to a temporary rebound in U.S. stocks, this wave of optimism did not spread to the cryptocurrency market. On the contrary, Bitcoin has continued to decline for more than a month, even breaking below the daily upward trend line, with technical indicators showing a pattern of "accelerated bottoming." At the same time, the U.S. non-farm employment data for September showed an increase of 119,000 jobs, far exceeding the market expectation of 50,000, yet it failed to boost market confidence. The unemployment rate rose to 4.44%, increasing for three consecutive months, indicating that concerns in the job market remain. Analysts pointed out that this report is the most important employment reference before the Federal Reserve's interest rate meeting next month, and the market's focus has shifted to "whether the Federal Reserve will initiate a preventive rate cut in December." ▌Whales sell off, ETF funds retreat, cryptocurrency market falls into "confirmed bear market" 10X Research analysts stated that the cryptocurrency market has entered a "confirmed bear market phase," with three major negative signals emerging: Weak ETF inflows: Large institutions and ETF funds that once supported the market continue to withdraw, causing the market to lose crucial buying support. Long-term holders selling off: Since September, whale-level investors have cumulatively sold off over $20 billion in assets, creating heavy selling pressure. Retail investors' willingness to enter is low: Market sentiment has deteriorated, and retail investors are hesitant to buy the dip, leading to continued liquidity shrinkage. CoinShares research director James Butterfill further pointed out that although the "four-year cycle" theory may not hold in fundamentals, it has become a self-fulfilling prophecy in the market, leading large holders to continue reducing their positions. ▌Technical indicators are oversold but have not stopped falling, $85,000 becomes the key lifeline From a technical analysis perspective, the RSI indicator on Bitcoin's daily chart has entered the oversold zone, theoretically approaching a rebound opportunity. However, as the market remains in an "accelerated decline" phase, the short-term trend still leans bearish. Options market data shows that traders are actively positioning for downside protection, with $85,000 becoming the most critical defense line, followed by $82,000. Industry experts believe that if Bitcoin can hold above the $85,000 level, there is a chance for a phase rebound before the end of November; conversely, if it falls below this level, it may further test the key psychological level of $80,000. ▌Can the AI frenzy and rate cut expectations become the market's salvation? Despite the cryptocurrency market being mired in difficulties, the AI wave and the Federal Reserve's policy direction remain key points of observation for the future. NVIDIA's earnings report proves that AI demand remains strong, and Jensen Huang and Elon Musk have joined forces to advance in Saudi Arabia, building a 500-megawatt giant data center, indicating that long-term growth momentum is undiminished. On the other hand, although there are differences within the Federal Reserve regarding the timeline for interest rate cuts, if the unemployment rate continues to rise, the possibility of initiating "preventive interest rate cuts" in December is increasing. If this comes to fruition, it will inject liquidity into the market and help stabilize and rebound cryptocurrency assets. Conclusion: Crisis or Opportunity? Patiently Awaiting Market Bottom Signals The current cryptocurrency market is experiencing a dual blow from "leverage cleansing" and "institutional withdrawal," with sentiment extremely pessimistic. However, historical experience shows that oversold phases often present opportunities for long-term investors to accumulate positions at lower prices. It is recommended that investors closely monitor the performance of the $85,000 support level and pay attention to market turning signals after the end of November. Maintaining calm amid panic is essential to seize the next rebound opportunity