The crypto bloodbath continued Thursday with Bitcoin (BTC) breaking through key support levels and dragging the broader market down with it. When Bitcoin catches a cold, the whole crypto market gets pneumonia—and right now, things are looking pretty feverish.

Where Things Stand

Here's the damage across major cryptocurrencies:

Bitcoin has plunged to the $87,000 range after briefly touching $86,000, while Ethereum (ETH) slipped below the psychologically important $3,000 level. XRP is barely clinging to $2, though it's showing relative strength compared to the carnage elsewhere.

The Liquidation Carnage

According to Coinglass data, 215,171 traders were liquidated over the past 24 hours, with total losses hitting $827.79 million. That's not a typo—nearly a billion dollars in leveraged positions got wiped out as prices cascaded downward. Top losers included MYX Finance, Canton and Aster.

Why The Fed Is Flying Blind

Bitcoin investor Lark Davis pointed to a key culprit behind the selloff: December rate-cut odds collapsed to just 31% after the Bureau of Labor Statistics confirmed there would be no October jobs report. Making matters worse, November's employment data won't arrive until after the upcoming FOMC meeting.

This puts Fed Chair Jerome Powell in an awkward position—essentially flying blind on critical labor market data. Without fresh employment numbers, markets are betting the Fed keeps rates higher for longer, which tends to hurt risk assets like crypto. That expectation helped drag Bitcoin down to $86,000.

What The Charts Are Saying

Technical analysts are watching several key levels. Altcoin Sherpa identifies Bitcoin's next major demand zone between $75,000 and $87,000, suggesting the market could eventually find its footing within that range.

Michael van de Poppe noted that BTC just set a fresh local low. For any meaningful reversal to take hold, he says Bitcoin needs to deliver a strong bounce on high volume and break above the 4-hour 20-day moving average to print a higher high. Without that technical confirmation, the downtrend stays in play.

ShardiB2 highlighted that Bitcoin's daily RSI has collapsed to 25, signaling deeply oversold conditions. Historically, these extreme readings can precede rebounds. A bounce off the weekly exponential moving average combined with holding current levels would create what he considers an ideal bullish setup.

The question now is whether oversold conditions translate into an actual bounce, or if this is just a pit stop on the way to deeper lows. With the Fed's next move uncertain and macro headwinds building, crypto traders are bracing for continued volatility.