Bitcoin Updates: Bulls Encounter Major Challenge: Will Bitcoin Recover Important Levels After a 30% Decline?
- 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
This wave of selling has occurred alongside unprecedented withdrawals from Bitcoin exchange-traded funds (ETFs),
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. "
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,
Blockchain data highlights the extent of the downturn.
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.
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.
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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