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Bitcoin Updates: Bulls Encounter Major Challenge: Will Bitcoin Recover Important Levels After a 30% Decline?

Bitcoin Updates: Bulls Encounter Major Challenge: Will Bitcoin Recover Important Levels After a 30% Decline?

Bitget-RWA2025/11/23 09:04
By:Bitget-RWA

- Bitcoin fell below $87,000 in Nov 2025, triggering $914M liquidations and pushing its unrealized loss ratio to 8.5%, signaling bearish sentiment. - ETF outflows hit $903M in one day, with BlackRock's IBIT losing $355.5M, attributed to institutional profit-taking and year-end risk-off moves. - Japan's $135B stimulus and Fed rate-cut uncertainty deepened selling, while Ark Invest added $39.6M in crypto firms amid price declines. - On-chain data shows $66.4M in losses from whale liquidations, but miners' ac

The unrealized loss ratio for Bitcoin has climbed to 8.5%, reflecting growing bearish sentiment as the crypto market endures a steep downturn. The value of

(BTC) dropped under $87,000 on November 20, 2025, reaching its lowest point in seven months and resulting in more than $914 million in liquidations, with over $703 million coming from long positions. This has increased downward pressure on the cryptocurrency, , a level often linked to bear market conditions in the past.

Bitcoin Updates: Bulls Encounter Major Challenge: Will Bitcoin Recover Important Levels After a 30% Decline? image 0

This wave of selling has occurred alongside unprecedented withdrawals from Bitcoin exchange-traded funds (ETFs),

, marking the second-largest outflow since their debut in January 2024. BlackRock’s (IBIT) experienced the largest withdrawal, losing $355.5 million, while Grayscale’s recorded $199.35 million in redemptions. Experts point to institutional investors locking in profits and a shift to risk aversion as the year ends, but emphasize this does not indicate a fundamental drop in demand. " , and the outflows are likely due to short-term portfolio adjustments rather than a mass exit," Bitfinex analysts commented.

Despite the market upheaval, Cathie Wood’s Ark Invest has been increasing its stakes in crypto-related companies, investing an additional $39.6 million in Bullish, Circle Internet, and Bitmine as their share prices declined. This approach signals confidence in long-term growth, even as the market remains volatile in the near term. "

to buy tokens at reduced prices," said Przemysław Kral, CEO of zondacrypto.

Broader economic factors have further fueled the bearish trend. On November 21, Japan’s government approved a $135.4 billion stimulus package to help offset inflation. However,

despite its reputation as a safeguard against monetary expansion. At the same time, the Federal Reserve’s ambiguous position on interest rate cuts has heightened risk aversion, according to the CME FedWatch tool.

Blockchain data highlights the extent of the downturn.

using a leveraged loan, incurring a $25.29 million realized loss, while the remaining 1,560 tokens are now sitting on an unrealized loss of $41.12 million. that for Bitcoin to reverse the bear trend, it must recover the 0.75 cost-basis quantile, a threshold that has marked pivotal moments in previous cycles.

Some technical signals offer cautious optimism. Bitcoin is currently testing the lower edge of a symmetrical rising channel established since 2023, and Santiment observes that intense retail pessimism often comes before a turnaround.

a yearly low of 15 out of 100, a level that has historically preceded recoveries within a few months. Additionally, miners have shifted from selling to accumulating, adding a net 777 over the past week, suggesting a stabilization in supply.

As the market processes these developments, the outlook remains unclear. While short-term investors are selling in panic, "strong hands" seem to be absorbing the excess supply, a pattern observed in previous capitulation phases. With Bitcoin now 30% below its October high, the coming weeks will reveal whether bulls can reclaim crucial technical and on-chain levels, or if the bearish phase will deepen further.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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