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Bitcoin Updates Today: Is Bitcoin's Decline a Temporary Correction or the Start of a Crash? Experts Disagree

Bitcoin Updates Today: Is Bitcoin's Decline a Temporary Correction or the Start of a Crash? Experts Disagree

Bitget-RWA2025/11/18 17:20
By:Bitget-RWA

- Bitcoin's recent sharp price swings, dipping below $90,000 before rebounding to $96,500, have intensified debates over bear market risks versus bull cycle consolidation. - MicroStrategy's CEO Michael Saylor denied Bitcoin sales, reaffirming accumulation strategies as institutional ETF redemptions hit $870M, signaling bear market concerns. - Technical analysts highlight critical $92,000–$95,000 support zones, with breakdown risks pushing prices toward $85,000–$90,000 amid deteriorating market sentiment. -

Bitcoin experienced significant volatility recently, briefly falling below $90,000 for the first time in seven months before recovering to $96,500 at the time of writing. This sharp movement has drawn increased attention to the cryptocurrency’s technical support levels and institutional involvement, with

or simply represents a short-term pause in a larger upward trend. Michael Saylor, CEO of holding company MicroStrategy (MSTR), refuted rumors of the firm selling its Bitcoin holdings and reiterated its commitment to accumulating more. MSTR’s Class A shares dropped 4.2% on Friday as Bitcoin slipped below $95,000, but .

Technical experts point to crucial support areas as pivotal for Bitcoin’s short-term direction. Should the price fall under $90,000, a correction of 25% to 40% could follow, consistent with previous mid-cycle corrections. Current trading patterns indicate Bitcoin is hovering in the $92,000–$95,000 range, which aligns with the 6–12 month cost basis and ETF inflows.

, with stronger support expected between $75,000 and $82,000 if broader economic conditions deteriorate. On-chain analysis, however, reveals no signs of major sell-offs by long-term “whale” holders, with most activity coming from 2024 and only one notable seller from 2011 .

Bitcoin Updates Today: Is Bitcoin's Decline a Temporary Correction or the Start of a Crash? Experts Disagree image 0
Market sentiment has worsened considerably, with the Fear & Greed Index dropping to 10, its lowest point in nearly nine months, signaling “extreme fear.” The recent selloff is being blamed on profit-taking by long-term investors, institutional withdrawals, and the liquidation of leveraged long positions. , bringing prices back to levels not seen since early March. on Thursday, prompting some to officially declare a bear market.

Despite the turbulence, El Salvador has doubled down on its Bitcoin investment, making its largest single-day purchase of 1,090 BTC (worth $100 million) as prices reached multi-month lows

. President Nayib Bukele highlighted the move on social media, describing it as a “buy the dip” approach. The nation’s Bitcoin reserves now stand at 7,474 BTC, valued at $676 million, even though a $1.4 billion IMF loan agreement restricts public-sector Bitcoin acquisitions. , with the IMF suggesting that the increase in reserves may be due to internal wallet consolidation rather than new purchases.

The stock market has also taken note of this aggressive accumulation.

on the euro earlier this month, have dropped to 78 cents as Bitcoin’s decline weighs on investor sentiment. In contrast, after announcing record second-quarter revenue of $87.3 million and a partnership with Dell to expand its AI-powered high-performance computing operations.

Bitcoin’s future direction will depend on whether it can reclaim its 365-day moving average, which could help ease selling pressure and avert a steeper decline.

: some view the recent drop as a buying opportunity for long-term investors, while others caution that weakness may persist unless institutional demand returns or macroeconomic conditions stabilize.

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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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