Today BTC surged to 87,220 and then immediately crashed back to 83,888, dropping 3,300 points in a single day.
Binance spot data: BTC latest price 84,115; 24-hour high 87,220; low 83,888; trading volume $2.175 billion.
From 87,220 to 83,888, it dropped 3,300 points, a decline of 3.8%.
Why can’t it break through? Because the 87,000 level is an iron wall.
87300 is a strong resistance level
Take a close look at BTC’s recent trend:
On September 22, BTC surged to 87,396 and then pulled back.
On October 3, BTC surged to 87,220 and then fell back again.
Both times it was pushed back from the 87,000–87,400 range. What does that mean? It means there are a large number of sell orders around 87,300—every time price reaches this level, someone sells off.
This is what technical analysis calls a “strong resistance level”—when the price surges to this point, it meets heavy sell pressure, making it hard to break through.
Why are there so many sell orders at 87,300?
Because this is the breakeven exit point for many people.
Think about it: in the 87,000–90,000 range, BTC had a dense period of traded volume in the first half of this year. Many people bought BTC around this level, and then got trapped for half a year.
Now BTC has finally risen back to 87,000. Those who have been trapped for half a year are finally getting out. What’s their first reaction? Sell as soon as possible—finally back to even. They never want to be trapped again.
So every time BTC surges to 87,000, there are a lot of breakeven sellers. That’s the fundamental reason why 87,300 is so hard to break.
There are a few other factors suppressing BTC
First, weak U.S. employment data. The latest jobs report came in below expectations. U.S. Treasury yields fell, and BTC jumped up at first. But weak data also implies the economy may slow down, and markets worry about a recession—so they started selling again.
Second, the situation in Iran. Trump rejected Iran’s proposal to reopen the Strait of Hormuz. Geopolitical risk increased. Oil prices rose, and capital rotated from risk assets to safe-haven assets.
Third, expectations of an interest rate hike in October. The market starts pricing in the likelihood that the Fed will hike rates again in October. Even though it was just hiked in September, inflation persistence is still there—so October may still see another hike.
Let me talk about it from a psychological perspective
Think back to these past two days:
Yesterday BTC rose to 85,000. You thought, “It’s going to break 87,000,” so you started adding to your position.
Today BTC surged to 87,220. You think, “Surely it’s about to break through,” so you add to your position.
Then BTC drops to 83,888, and you’re stuck. You want to cut losses but you’re unwilling to accept it.
This is the cycle of chasing at highs and cutting at lows. You always chase when it’s high, and cut when it’s low.
But have you thought about this: 87,300 is a strong resistance level. It failed twice—so can it really break through on the third attempt?
Chasing at a strong resistance level gives the worst risk-reward ratio. If it breaks through, you make 3%; if it doesn’t, you lose 4%. If that’s the case, why would you participate in this kind of gamble?
What should you do now?
First, look at the key levels:
BTC: 83,888 is today’s low—short-term support. If it breaks down, look at 82,000–83,000 as downside; pressure is 87,000–87,300.
ETH: 2,650 is today’s low—support. If it breaks below, look at 2,550 as downside; pressure is 2,780.
NEAR: 4.601 is today’s low—support. If it breaks below 4.5, look at 5.0 as pressure.
Let’s break it down by cases:
For those who laid in positions below 85,000: congratulations—you still have profits. If it can’t break through near 87,000, take some profit first. At/near strong resistance, if it’s time to lock in gains, lock them in.
If you chased at 87,000 today: you’re down 3–4% now. First, see whether 83,800 can hold. If it holds, there’s a chance of a rebound to 85,000, then consider reducing your position. If it can’t hold, reduce some first—don’t forcefully hold on.
For those in cash: don’t rush. 87,300 is a strong resistance level. It’s failed to break through twice already. Wait until it breaks above 87,500 and holds before entering, or wait for a pullback to 82,000–83,000 before entering. At the current position of 84,000, it’s neither up nor down— the risk-reward ratio isn’t good.
For those using leverage: get out and reduce leverage now. In a行情 (market move) where it can swing 3,000 points in a single day, adding leverage could lead to liquidation at any moment.
Lastly, one more thing
BTC surged to 87,220, but failed and then dropped by 3,300 points. At 87,300, it couldn’t break through twice because there’s a large amount of sell orders from people getting out at breakeven above.
Chasing at a strong resistance level is the worst trade in terms of risk-reward. If it breaks through, you make 3%; if it doesn’t, you lose 4%. Don’t take part in this kind of gamble.
Wait for it to break 87,500 and hold, or wait for a pullback to 82,000–83,000—then you can act; it’s not too late.
Did you chase today? A. You chased at 87,000 and are down 3% now. B. You positioned below 85,000 and you’re still making money. C. I’m in cash and avoided it. D. I bought the dip at 84,000 today. Be honest in the comments.
#BTC failed to break 87,220 and fell back by 3,300 points #analyzing the crypto market is really tough
