Bitcoin (BTC) has encountered a significant decline, dropping below the $87,000 mark on Thursday, November 20, 2025. The leading cryptocurrency fell by more than 5% within the last 24 hours, reaching a seven-month low of approximately $86,300 before an upward correction brought the price back to around $87,300 at the time of writing. This downturn also affected the broader cryptocurrency market, resulting in over $914 million being liquidated from leveraged positions, with long traders experiencing the majority of the losses at more than $703 million. This liquidation has further intensified the prevailing bearish sentiment.
Despite the current downturn, there are indicators suggesting that a rebound could be imminent for Bitcoin. The price is currently testing a significant liquidity level, with technical analysis revealing that since early 2023, Bitcoin has been forming a symmetrical rising channel. Following its all-time high of around $126,000 in October, the coin has been in a corrective phase, now retesting the lower boundary of its macro rising channel.
Market analysis from Santiment shows a notable shift in retail trader sentiment, with many predicting that Bitcoin could plunge below $70,000. However, historical patterns suggest that markets often move contrary to retail trader expectations. This sentiment appears to be reinforced by the extreme fear of further capitulation within the crypto space. The CoinMarketCap Fear and Greed Index has dropped to its lowest yearly level at around 15 out of 100. Past instances of such low readings have typically led to bullish recoveries in the months that followed.
Moreover, the reopening of the U.S. government is projected to enhance liquidity in the crypto market, coinciding with anticipated Quantitative Easing (QE) measures from the Federal Reserve. Historical trends suggest that the current environment could mirror the recovery that followed the U.S. government shutdown in 2019, providing further optimism for Bitcoin bulls looking for signs of a significant rebound.
