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Bitcoin News Update: Recent Bitcoin Selloff Led by Short-Term Holders While Long-Term Investors Remain Unfazed

Bitcoin News Update: Recent Bitcoin Selloff Led by Short-Term Holders While Long-Term Investors Remain Unfazed

Bitget-RWA2025/11/21 20:52
By:Bitget-RWA

- Bitcoin triggered a "death cross" on Nov. 16, falling below key moving averages to $80,500, erasing 2025 gains and causing $1B+ liquidations. - Analysts split between bearish signals (historical 60-70% declines post-2018/2022) and skepticism about outdated technical indicators. - Short-term holders drove $800M+ weekly losses (2022 levels), contrasting long-term holders' calm amid deteriorating market structure. - Price must reclaim $100,000 within days to invalidate bear case, with potential 2026 bottom

Bitcoin's technical signals have issued a stark alert as the cryptocurrency confirmed a "death cross," a bearish chart pattern that has often preceded extended declines. On November 16,

, marking the first occurrence of this crossover since January 2024. The price fell to $80,500, , wiping out all gains made in 2025 and causing over $1 billion in liquidations throughout the crypto sector. , reflecting intense market fear, while on-chain metrics revealed realized losses climbing to levels .

The death cross, a well-known technical indicator, has often come before steep price drops. In 2022,

to $15,500, and in 2018 and 2020, it preceded declines of 67% and 71%, respectively. Experts are divided on whether this marks the start of a new bear market or just a temporary correction. Some, such as , describe the move as a "routine" bear phase, while others, including Egrag Crypto, believe moving averages have lost their predictive edge and that is still holding above crucial long-term support
.

Market conditions have worsened further.

, undermining bullish momentum.
Bitcoin News Update: Recent Bitcoin Selloff Led by Short-Term Holders While Long-Term Investors Remain Unfazed image 0
, with realized losses topping $800 million per week, a threshold last reached in November 2022. , closing positions as prices dip below their cost basis. Meanwhile, , indicating underlying market resilience.

Historical trends present conflicting signals.

, leading to renewed upward momentum, although the 2022 downturn persisted for 364 days. If the current cycle peaked in October 2025, , echoing earlier cycles. by seasoned holders, complicating bullish expectations.

The broader economic backdrop adds more uncertainty.

, with debates ongoing about whether a policy shift will spark inflation or help stabilize markets. Bitcoin's price swings have also been intensified by , which led to $19 billion in liquidations, along with persistent pressure from derivatives trading
.

Looking forward,

and reclaim the 350-day moving average to dismiss the bearish scenario. , but if the price fails to recover, it may confirm a more severe downward trend. : "The price must quickly reclaim this level during a relief rally to preserve the market structure."

0

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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