Bitcoin (BTC) has experienced a significant decline, dropping below $87,000 on November 20, 2025. The cryptocurrency fell by over 5% in the past 24 hours, reaching a new seven-month low of approximately $86,300. At the time of reporting, Bitcoin had slightly recovered, trading around $87,300. This downturn has affected the broader cryptocurrency market, leading to over $914 million in liquidations among leveraged traders, with more than $703 million attributed to long positions. This trend has intensified bearish sentiment within the market.
Potential for Price Recovery
Despite the current downturn, there are indicators suggesting that a rebound may be on the horizon for Bitcoin. The cryptocurrency is currently testing a crucial liquidity level, which could act as technical support. Since early 2023, Bitcoin has formed a symmetrical rising channel, and following its all-time high of approximately $126,000 in October, it has been undergoing what many analysts describe as a correction phase.
Market analysis from Santiment shows that retail traders are increasingly predicting a drop in Bitcoin’s price to below $70,000. Interestingly, the firm notes that markets often move contrary to the sentiments of retail traders, suggesting a potential shift in price direction.
The current atmosphere of extreme fear is further reflected in CoinMarketCap’s Fear and Greed Index, which has plummeted to a yearly low of 15 out of 100. Historically, similar low readings have preceded bullish rebounds in the following months, indicating that a turnaround could be forthcoming.
Broader Market Dynamics and Historical Context
The anticipated reopening of the U.S. government is expected to bring liquidity back into the cryptocurrency market, particularly with expectations surrounding the Federal Reserve’s Quantitative Easing (QE) measures. CoinPedia has reported that Bitcoin’s price could mirror the rebound experienced after the U.S. government shutdown in 2019, suggesting that market conditions may soon improve.
As traders and investors closely watch these developments, the combination of technical support levels and historical trends may provide the necessary groundwork for Bitcoin to regain its footing in the coming weeks. With the current market volatility, the sentiment remains cautious, but a recovery could be on the horizon as external factors begin to shift favorably.