The intraday Bitcoin price has fallen to $85,536, a decline of nearly 6%. This drop is not isolated, as the entire cryptocurrency market is experiencing a "collective plunge," with major tokens like Ethereum also seeing significant declines.

The direct catalyst for the drop may be related to sudden rumors in the market about the Federal Reserve Chair. Additionally, the People's Bank of China has recently reaffirmed its prohibitive policies on virtual currencies, and the downgrade of the rating for the USD stablecoin USDT has also intensified negative sentiment in the market.

After Bitcoin broke through multiple short-term supports, the technical outlook has weakened, and it may continue to seek support downwards in the short term.

Key price levels to watch include: the intraday low range of $86,000-$85,500; if it breaks below, the next target looks towards the on-chain cost support at $81,700, as well as the psychologically significant level of $80,000 that the market is widely watching.

12.1

Bitcoin: 87,000-87,500, target 86,300-85,300 stop loss 88,000$BTC