Bitcoin (BTC) experienced a significant decline this past Sunday, reaching a low of $93,029. This drop represents the first instance this year where the cryptocurrency traded below its January 1 opening price of $93,507. The recent downturn has seen Bitcoin fall 25% from its all-time high of approximately $126,000 recorded in October, despite favorable policies from the pro-crypto Trump administration.
Currently, the technical indicators suggest that Bitcoin is nearing a critical junction. The 50-day moving average is on the verge of crossing below the 200-day moving average, a scenario known as a “death cross.” This pattern typically indicates a bearish market sentiment. However, historical data indicates that previous death crosses in this cycle have often coincided with local market bottoms rather than signaling extended declines.
In the past, when Bitcoin faced similar technical patterns, the cryptocurrency rebounded strongly. For instance, following the death cross in September 2023, Bitcoin found support around $25,000. Another significant example occurred in April 2025, where the asset bottomed below $75,000 amidst uncertainties regarding the Trump administration”s tariff policies.
The recent sell-off coincided with the reopening of the U.S. government on November 12 after a prolonged shutdown. Since then, Bitcoin has experienced a 10% decline, paralleling a similar pattern observed in 2019. After the government reopened on January 25 that year, Bitcoin fell over 9% within five days, taking roughly two weeks to recover.
While the current correction has lasted 41 days, it is noteworthy that the earlier April correction was both deeper and more prolonged, with a 30% decline over 79 days from the peak of $109,000.
Despite the recent price drop, analysts from Glassnode noted that older Bitcoin holders are liquidating portions of their holdings, a behavior categorized as “normal bull-market activity.” This selling trend is seen as typical profit-taking during the later stages of a bull market. Additionally, the adoption of Bitcoin in corporate treasuries has been on the rise throughout 2025, complemented by consistent inflows into spot Bitcoin exchange-traded funds.
Looking ahead, Matt Hougan, chief investment officer at Bitwise, maintains a positive outlook for 2026, citing the “debasement trade” narrative alongside growth across stablecoins, tokenization, and decentralized finance.
Although Bitcoin has bounced back slightly from its low, it remains below its starting price for 2025 as of Monday.
