Bitcoin has recently experienced a significant downturn, decisively breaking below crucial psychological and technical support levels. Market indicators and price action suggest a prevailing bearish sentiment, with sellers firmly in control and signs pointing towards further potential depreciation if key zones fail to hold.
Bitcoin's Sharp Descent and Critical Support Zones
The cryptocurrency benchmark recently plunged below the $90,000 mark, clinging to the lower Bollinger Band and currently testing the S3 pivot area in the mid-$80,000 region. This move signifies a strong bearish trend, with the 20-day Bollinger midline near $100,000 now acting as major resistance. Should the current support around $85,000 fail to hold on a closing basis, deeper support is anticipated around $80,000-$82,000, a zone where historical demand and Fibonacci confluence align. In a more severe capitulation scenario, an extended 1.618 downside projection points towards the low-$70,000 range as the next major target. For any bullish recovery to gain traction, Bitcoin would need to reclaim $90,000, and ideally the Bollinger midline near $100,000, to signal a potential reversal of the current downtrend.
Market Indicators Signal Continued Downside Pressure
Reinforcing the bearish outlook, several key market indicators confirm the persistent selling pressure. The Chaikin Money Flow (CMF) currently stands at -0.15, firmly in negative territory and indicating a consistent pattern of distribution rather than accumulation. Crucially, there is no visible bullish divergence between CMF and price, suggesting that capital outflows continue to deteriorate as Bitcoin's price falls. Furthermore, the sharp expansion of the Bollinger Band width often accompanies periods of accelerated trend, rather than calm consolidation, underscoring the intensity of the current sell-off. Liquidation data from November 20th provides further evidence, revealing approximately $366 million in long position liquidations, predominantly impacting high-leverage venues. This surge in forced selling indicates that over-leveraged bulls are being squeezed out of the market, driven by real de-risking and selling rather than just a quick technical shakeout, thus confirming the active downside phase Bitcoin is currently navigating.
