Bitcoin Drops Below $90K Again, Losing All 2025 Gains After a Sharp 30% Post-ATH Correction

Bitcoin has fallen below $90,000 for the second time this week, erasing all year-to-date gains and marking a 30% correction from its all-time high reached in October.

The world’s largest cryptocurrency traded at $89,473.56 at press time, down 4% in 24 hours and 12% over the past week. Its market capitalization declined to $1.78 trillion, matching the 4% daily drop.

Bitcoin first breached the $90,000 threshold yesterday before recovering briefly, with a death cross pattern forming below $94K. The repeated failure to hold this level signals intensifying selling pressure across the cryptocurrency market.

Bitcoin Liquidations Hit $316 Million Amid Extreme Fear

The sharp decline triggered widespread liquidations across crypto exchanges. A total of 122,196 traders were liquidated in the past 24 hours, with total liquidations reaching $315.98 million.

The global crypto market capitalization fell 1.37% to $3.12 trillion. The Fear & Greed Index plunged to 16, indicating the 8th day of extreme fear among market participants, its lowest since March, 2025 and the longest in 3 years.

Bitcoin maintains 58.7% market dominance despite the downturn. Spot trading volume has declined 43% year-over-year, creating thin liquidity conditions that amplify price volatility.

Meanwhile, altcoins have shown unusual relative strength during the selloff. Glassnode data reveals most cryptocurrency sectors are outperforming Bitcoin following a prolonged period of underperformance.

Bitcoin ETF Outflows Top $3 Billion as Regulatory Uncertainty Deepens

Spot Bitcoin ETFs have recorded their heaviest outflows since February, with more than $558.89 million exiting today, according to data from Lookonchain. These funds represented the primary source of institutional demand throughout 2025.

BlackRock deposited 6,735 BTC worth $616.09 million and 64,706 ETH valued at $199.73 million into Coinbase this week. The asset manager appears positioned to offload over $2.5 billion worth of cryptocurrency.

BlackRock deposited 6,735 $BTC, worth $616.09M, and 64,706 $ETH, worth $199.73M, into #Coinbase, and likely to deposit further.https://t.co/pyOLoPpL7H pic.twitter.com/K1dd6ODHTT

— Onchain Lens (@OnchainLens) November 19, 2025

Regulatory uncertainty has added to selling pressure. The White House is reviewing an IRS proposal to tax foreign crypto accounts, potentially forcing repatriation of offshore holdings.

Quantum computing concerns have emerged as an additional bearish factor. Pioneer Scott Aaronson warned of a “live possibility” for Bitcoin-breaking quantum technology by 2028, undermining confidence in long-term security.

Rising expectations that the Federal Reserve will delay interest-rate cuts have weakened risk appetite. Higher rates for longer periods typically drive investors away from risk assets like Bitcoin.

The broader crypto market has shed approximately 25% of its value over six weeks. High leverage and forced liquidations are accelerating the selloff through cascade effects across exchanges.

Bitcoin Breaks Key Moving Averages as Oversold Signals Mount

Bitcoin has broken decisively below both the 7-day simple moving average at $95,789 and the 30-day SMA at $105,096, confirming a bearish downtrend.

The Relative Strength Index stands at 27.02, indicating deeply oversold conditions. However, the RSI can remain depressed during strong downtrends without triggering immediate reversals.

The MACD indicator shows strong bearish divergence at -1,054.85, with the signal line at -3,743.46. The widening negative histogram confirms accelerating downward momentum.

Critical support sits at the current $89,000-$90,000 zone. The 200-day SMA at $85,700 represents the next major support level if the current floor fails.

Trading volume reached 20.74K BTC, with elevated activity during the decline. Red volume bars dominate recent sessions, suggesting strong selling conviction among market participants.

Traders on X noted Bitcoin is retracing to mitigate prior demand zones. On lower timeframes, early reversal signs are emerging, but price needs to close above $96,043 to confirm genuine strength.

The combination of broken moving averages, deeply negative MACD, and oversold RSI without reversal signals points to continued downside risk. A decisive break below $90,000 could trigger algorithmic cascade selling toward the $85,000 zone.