Bitcoin’s price plunged below $87,000 on November 20, 2025, marking a significant decline for the leading cryptocurrency. Over the past 24 hours, the value of Bitcoin (BTC) dropped by more than 5%, reaching a seven-month low of approximately $86,300 before slightly recovering to around $87,300 at the time of reporting. This downturn coincided with a broader decline in the cryptocurrency market, resulting in over $914 million liquidated from leveraged traders, with long positions accounting for more than $703 million of that total.
Market Trends and Technical Analysis
The current market dynamics suggest that a rebound for Bitcoin could be on the horizon. Presently, BTC is retesting a crucial liquidity level, an important technical indicator for traders. Bitcoin has been exhibiting a symmetrical rising channel since early 2023, following its all-time high of about $126,000 in October. The cryptocurrency has since entered a correction phase, making its way back to the lower boundary of this macro rising channel.
According to data analysis from Santiment, retail traders are increasingly predicting that Bitcoin’s price may fall below $70,000. Interestingly, Santiment has observed that market movements often trend contrary to retail expectations. Therefore, the prevailing bearish sentiment among retail investors might be setting the stage for a potential upturn.
Investor Sentiment and Historical Context
The current climate is marked by extreme fear regarding further capitulation in the cryptocurrency market. Notably, the Fear and Greed Index from CoinMarketCap has plummeted to a yearly low of 15 out of 100. Historically, similar low readings have preceded bullish rebounds in the months that followed.
Additionally, historical patterns indicate that after the U.S. government shutdown in 2019, liquidity returned to the market, contributing to a significant rebound in Bitcoin’s price. With expectations of potential Quantitative Easing (QE) from the Federal Reserve following the reopening of the government, there are indications that Bitcoin may experience a similar recovery this time around.
As market participants keep a close eye on these developments, the interplay of technical indicators and investor sentiment will be crucial in determining Bitcoin’s trajectory in the coming weeks. The juxtaposition of fear among retail traders and the historical trends suggests that a rebound, while uncertain, is within the realm of possibility.
