Hassan Maishera
TL;DR
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BTC has dropped below $90k after losing nearly 6% of its value in the last 24 hours.
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The $80k support level is crucial, as any dip below that could result in a crash towards $74k.
BTC Dips Below $90k
Bitcoin has continued its bearish performance in November as the leading cryptocurrency by market cap lost nearly 6% of its value in the last 24 hours. It is now trading around $89,700 per coin, its lowest level in six months.
Rachael Lucas, crypto analyst at BTC Markets, pointed out that institutional investors are leading the charge, with ETF outflows signaling profit-taking and risk-off positioning ahead of year-end.
Data obtained from SoSoValue revealed that spot bitcoin ETFs in the U.S. have posted over $3 billion worth of net outflows in the past three weeks.
Vincent Liu, CIO at Kronos Research, believes that short-term traders are adding pressure to prices, even though long-term holders remain confident in bitcoin.
"BTC's long-term value as digital gold remains intact, but short-term selling from traders, leveraged players, and funds adjusting exposure is weighing on prices."
According to Liu, macroeconomic factors and asset rotation continue to drain liquidity from the crypto market, putting heavy pressure on Bitcoin’s price in the near term.
Analysts believe that liquidity-tightening measures stemming from the recent U.S. government shutdown affected Bitcoin and the broader crypto market, as they kept the Treasury General Account (TGA) elevated by limiting the government's ability to spend on non-essential operations.
Furthermore, the uncertainty surrounding the Federal Reserve's interest rate decision in December is negatively affecting investors’ sentiment. Most traders are less optimistic about a Fed rate cut by next month.
"BTC slipping below $90k mark is a short-term retracement, with $85K–$87K as the immediate support zone. Regaining $90K is crucial for buyers to restore confidence, especially with sentiment still muted at 11 on the Fear & Greed Index," Liu concluded.
Altcoins Suffer Dip
Bitcoin’s dip continues to affect altcoins, with most of them down 5% or more in the last 24 hours. Ether has dropped below the $3k psychological level, while XRP risks dropping below $2 if the bearish trend continues.
Thanks to the ongoing bearish performance, the total cryptocurrency market cap has dropped to $3.07 trillion.
