A severe market downturn has pushed Bitcoin below the crucial $90,000 threshold, reaching its lowest valuation in six months. This dramatic slide raises a pivotal question for investors: has the premier cryptocurrency surrendered its entire yearly gain, or does the current wave of panic selling present the most compelling buying opportunity of the year?
Macroeconomic Pressures and Widespread Fear
The sell-off finds its roots in a shifting macroeconomic landscape. Robust U.S. economic indicators have diminished market expectations for an interest rate cut in December, fostering a risk-averse environment. In such conditions, highly volatile assets like cryptocurrencies often bear the brunt of the selling pressure. This caution is further evidenced by institutional behavior, with Bitcoin ETFs experiencing net outflows.
Market sentiment has plummeted to levels of “Extreme Fear,” as reflected by the Crypto Fear & Greed Index registering a mere 14 points. The downward momentum has been exacerbated by the forced liquidation of leveraged positions, wiping a staggering $947 million from the market within a single 24-hour period. From its peak in October, Bitcoin’s value has declined by 27%, effectively erasing all the gains it had accrued throughout 2025.
A Bearish Technical Outlook
From a technical analysis perspective, the signals are predominantly negative. Bitcoin has not only broken below its 100-hour moving average but has also formed a dreaded “Death Cross.” This technical event, which occurs when the 50-day moving average crosses below the 200-day moving average, is historically interpreted as a bearish indicator.
Should investors sell immediately? Or is it worth buying Bitcoin?
The immediate critical support level to watch is now positioned at $90,800. A failure for bullish traders to defend this line could trigger a further descent toward lows around $86,000 or even lower. To signal a potential trend reversal and regain bullish momentum, the asset would need to decisively reclaim key resistance levels, starting with the significant hurdle at $95,850.
Glimmers of Hope Amid the Pessimism
Despite the overwhelmingly negative backdrop, several on-chain metrics suggest a potential silver lining. Data indicates that short-term holders are currently capitulating, an event that often signals a correction is entering its final stages. Furthermore, the Stablecoin Supply Ratio RSI is flashing buy signals, hinting at substantial purchasing power waiting on the sidelines, ready to enter the market.
Influential figures in the crypto space, such as Gemini co-founder Cameron Winklevoss, are framing this downturn as a potential historic entry point. He recently suggested that this could be the final occasion for investors to purchase Bitcoin below $90,000. This perspective highlights a market divide: while wallets holding over 1,000 BTC (often called “whales”) have been net sellers, other participants are seemingly using the price drop to position themselves for the next anticipated market upswing. The central uncertainty that remains is the timing of its arrival.
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