BTC Retests $85,000 Support as Liquidations Rise Ahead of U.S. Jobs Data

BTC has the key $85,000 support level again as leveraged positions unwind ahead of key U.S. jobs data, making the cryptocurrency market even more volatile. On December 15, the leading digital asset fell towards this psychological level. 

This was part of a longer-term drop from recent highs, as investors were less willing to take risks in both stocks and cryptocurrencies. Liquidations in BTC futures markets rose sharply, further pressuring prices as traders adjusted their positions in anticipation of non-farm payrolls and other economic indicators. 

Liquidations Rise Because of Macro Pressures

The drop is due to several factors, including people taking profits later than couldn’t hold higher support levels and the Federal Reserve’s decision to delay interest rate reductions.

“BTC’s drop back towards $85,000 is an extension of fragileness that begined later than the local high on December 9, just before the Fed meeting,” said Gabriel Selby, head of research at CF Benchmarks. He pointed out that it was a “tumultuous macro week” because data releases like non-farm payrolls, unemployment numbers, retail sales, and the November report were all postponed. 

When primary technical levels broke, leveraged long positions triggered a chain of liquidations that worsened the collapse. Joe DiPasquale, CEO of BitBull Capital, said that “macroeconomic pressures and market positioning” were to blame for the drop.

Risk assets were widely sold off as chances for a rate cut faded. BTC’s relationship with the has been like a 4% drop in tech stocks and a steeper 30% drop in crypto stocks since they peaked at $126,000 in October. 

Key Supports and Technical Outlook

Technical analysis suggests that prices will settle between $84,000 $85,000, which is in line with previous lows from April, November, and December.

If the price stays below $80,000 for a long time, it might turn the market bearish and aim for $74,000, which is a 161.8% Fibonacci extension and a possible capitulation zone for institutional reaccumulation. The Bank of Japan meeting on December 19 and the holiday season make risk assets more volatile in the near term. 

Even with a lot of pressure, BTC’s fundamentals remain strong. firms are still purchaseing at current values, and regulatory hurdles are getting easier under President Trump’s administration. “This year, BTC’s fundamentals have become significantly more robust,” said Enne, manager at Ps, pointing to the fact that more institutions are getting involved.

Effects on the Market as a Whole

The U.S. jobs report is a key factor. Strong statistics make it less likely that rates will go down and hurt BTC, while fragile numbers could spark a relief rally. Year-end dynamics often amplify swings, but historical patterns show that $85,000 is a strong demand zone. 

Traders look to flows and on-chain metrics to gauge whether the market is giving up, as cumulative losses have taken more than $100 billion off the crypto market cap in the last few days. This retest shows how sensitive BTC is to economic changes, but it also sets it up for a possible rebound if support holds as volumes drop.