- Bitcoin crashes below $90k as liquidations accelerate across major exchanges.
- Massive $903M Bitcoin ETF outflows deepen market panic and selling pressure.
- Analysts say Bitcoin’s cycle is resetting, but the long-term bull trend remains intact.
The crypto market is facing one of its worst days in months after a violent sell-off erased billions from total market value. Bitcoin, Ethereum, and major altcoins plunged sharply as panic selling, massive ETF outflows, and weakening support levels triggered a chain reaction across global markets.
Bitcoin fell through its critical $90,000 support zone, dropping to nearly $86,000, which triggered a wave of automated liquidations across major exchanges. The next strong support sits near $83,800, a level traders will watch closely to determine whether further downside is coming.
The selling pressure intensified after spot Bitcoin ETFs in the U.S. recorded $903 million in net outflows on November 20, the second-largest ETF outflow day in history.
Ethereum Suffers Eight Straight Days of ETF Outflows
Ethereum was hit even harder, falling almost 42% from its highs, now trading near $2,700. Its spot ETFs recorded another $262 million in outflows, marking eight consecutive days of withdrawals, signaling fading institutional confidence.
Bitcoin’s Cycle May Be Resetting
Crypto analyst Rekt Capital said Bitcoin’s unusual price behavior may be linked to its market cycle. He said that Bitcoin was 260 days ahead of schedule when it hit a new all-time high before the 2024 halving. But after that, Bitcoin spent eight months moving sideways, which erased this early lead.
Now, Bitcoin is rejecting its old all-time highs about 550 days after the halving, which matches past bull-market peaks. This shows Bitcoin may now be following its historical cycle again and could even be entering a longer cycle than usual.
Analyst Says Bitcoin Bull Market Is Still Alive Despite
Lark Davis says the global economy is still stuck in a long contraction phase. US manufacturing has been below 50 for almost three years, which is unusually extended. Historically, Bitcoin performs best when the economy moves from contraction back into expansion. Here are more reasons why:
- Bitcoin Is Holding Stronger Than It Looks: Even with a weak economy, Bitcoin has stayed surprisingly stable. He says this shows the bull market hasn’t broken.
- ETF Demand Is Still Absorbing Major Selling Pressure: According to Davis, spot ETF inflows remain one of Bitcoin’s biggest supports. Even with volatility and short-term selling, institutional demand continues to offset supply.
- Liquidity Is Expected to Improve in the Coming Months: Davis argues that the next big rally could start once global central banks begin easing policy. When liquidity increases, risk assets like Bitcoin usually surge.
Related: Will Bitcoin Price Rise Again? Here’s What Industry Experts Are Saying
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