Bitcoin has fallen below the $90,000 mark! Market panic is spreading, and key support levels are facing severe tests.
Today (November 18), Bitcoin continues to decline, briefly falling below $90,000, hitting a new low in nearly six months. This also means that Bitcoin has completely retraced all gains since 2025, and market sentiment has plummeted.
Our article yesterday clearly pointed out that the previous rebound was merely a technical correction, not a trend reversal. Most indicators are severely oversold, and we still recommend taking a rebound opportunity when prices fall back to the range of 94,000 to 93,000. Subsequently, the market touched a low of 93,500 before quickly rising above 96,000. We also promptly reminded everyone to reduce their positions, emphasizing that if it cannot stabilize above 96,000, the upward space will be limited. Unfortunately, the subsequent market stopped near 96,000, and further short positions did not provide entry opportunities!
Now Bitcoin has fallen below the 90,000 USD mark; where will it go next? Let’s look for clues in the market together.
📉 Current Market Conditions
This crash is not accidental but a result of the resonance of multiple bearish factors:
· Bitcoin's market value has evaporated by about 600 billion USD since the peak in October, while the total market value of the entire cryptocurrency market has shrunk by over 1 trillion USD.
· The Fear and Greed Index has fallen to 12, entering the 'extreme fear' range, marking the lowest level since 2022.
🔍 In-depth Analysis of Downward Causes
1️⃣ Macro Pressure: Federal Reserve policy shift and liquidity tightening
· Interest rate cut expectations have cooled sharply: The market's expectation for the Federal Reserve to cut rates in December has plummeted from about 90% earlier this month to about 40%, with several Federal Reserve officials recently expressing a tendency to delay rate cuts.
· Liquidity continues to shrink: As an important source of incremental funds, Bitcoin spot ETF has seen continuous net outflows since September, even experiencing a massive net outflow of 866.7 million USD on November 14.
2️⃣ Funding Pressure: Long-term holders and institutions are both selling off
· Long-term holders are taking profits: In the past 30 days, long-term Bitcoin holders have sold approximately 815,000 Bitcoins, setting a record for the highest sell-off since early 2024.
· Institutional allocation pace slows: Some institutional accounts have also slowed down their allocation pace, which has led to a loosening of the funding chain that previously supported the market.
3️⃣ Market Structure is Fragile: High leverage and panic sentiment resonate
· High leverage risk concentrated explosion: According to Coinglass data, over 230,000 trading accounts have been liquidated in the past 24 hours. Around 1.12 billion USD of long liquidation risk is concentrated near 90,000 USD, and if the price breaches this level, the total liquidation scale could reach as high as 1.12 billion USD.
· Emotion-driven trading behavior: Market sentiment is extremely fragile, and any small decline may be amplified into panic selling.
📊 Technical Analysis: Key Levels and Market Signals
Key Support and Resistance
Currently, 90,000 USD is the most important psychological and technical support level, which has been initially breached. If it cannot be quickly reclaimed, the price may further drop to the 88,500 USD or even 85,000 USD range.
Recent resistance is in the 92,900–94,000 USD range, with stronger resistance between 96,600 - 97,200 USD.
Technical Indicators
· RSI: The daily RSI has dropped to 28.5, indicating that the market is in an extremely oversold state, and the rebound momentum is building up.
· MACD: Still in the deep negative territory, indicating that the downward trend momentum has not yet exhausted.
💡 Trading Strategy Reference
· Short strategy: If the price rebounds to the 92,900–94,000 USD range and shows signs of stagnation, consider lightly shorting with targets around 90,000, 88,880, or even near 85,000 USD.
Medium to long-term investors
· Stay patient and wait for clear stabilization signals. It is recommended to observe whether the price forms daily long lower shadows and other reversal patterns around 90,000 USD before considering phased entries.
· The key signals for a true stabilization are: first, ETF funds resume net inflows; second, the price stabilizes above 96,600 USD on the daily chart.
· Short-term (1-2 weeks): Bitcoin is likely to fluctuate widely in the range of 88,500 - 96,600 USD to digest the recent sharp decline.
· Medium to long term: As long as the macro interest rate path gradually becomes clear and ETF funds stabilize, Bitcoin is expected to build a new balance amid fluctuations and reopen upward space.
⚠️ Risk Warning:
This article is only a personal market analysis and does not constitute any investment advice. The cryptocurrency market is highly volatile and risky; please make rational judgments and cautious decisions.
Author: He B Trader
