Bitcoin Drops to $87K — Is the Market About to Hunt $80K or Rip Toward $93K?

Bitcoin retreated to $86,352 on November 25, following a brief rally to $89,000 the previous day. The decline represents a 2.63% drop in 24 hours and 7.3% over seven days.

The Bitcoin Fear and Greed Index registered 20, signaling extreme fear among market participants. Meanwhile, 34.91% of Bitcoin’s supply trades below holders’ cost basis, according to Glassnode data.

Ethereum shows 38.37% of supply underwater, while Solana faces the deepest strain at 74.84%. XRP follows at 36.70%, highlighting widespread unrealized losses across major cryptocurrencies.

Bitcoin Whale Moves $1B to Exchanges Amid Binance Legal Battle

A federal lawsuit alleges Binance facilitated over $50 million in Hamas-linked transactions before October 7 attacks. Binance denies wrongdoing, though the case recalls its 2023 $4.3 billion AML settlement.

The lawsuit pressured BNB down 3.1% in 24 hours, amplifying anxiety across crypto markets. Bitcoin currently trades 30% below its October all-time high of $126,000.

This week, a whale moved 12,000 BTC, worth $1.03 billion, to exchanges, marking the largest transfer since November 2024. The Exchange Whale Ratio hit 0.50, well above the year-to-date average of 0.22.

Historically, ratios above 0.45 often precede 5–10% corrections. Bitcoin also struggled to maintain gains above $90,000, with the 200-day simple moving average at $110,136 acting as resistance since November 18.

Despite selling pressure, institutional accumulation continues. Capital B purchased 5 BTC, bringing holdings to 2,823 BTC with a 1,658.5% year-to-date yield. A Satoshi-era whale acquired 10,145 BTC worth $1 billion after holding for 15 years.

Bitcoin ETF Inflows Surge as Texas Launches Strategic BTC Reserve

Bitcoin ETFs saw renewed strength on November 25, with eleven products posting net inflows of 807 BTC worth $70.22 million. Grayscale led the activity, adding 1,711 BTC valued at $148.93 million to its holdings.

Meanwhile, BlackRock’s IBIT transferred $390.74 million in Bitcoin to Coinbase, marking a notable uptick in large-volume movements. On the macro side, easing financial conditions remain in focus, with the CME FedWatch Tool assigning an 84.7% probability to a 25 bps rate cut at the Federal Reserve’s December meeting.

📊 UPDATE: CME FEDWATCH PUTS THE ODDS OF A 25 BPS FED RATE CUT IN DEC. AT 84.7%, WITH JUST 15.3% FOR NO CHANGE. pic.twitter.com/zqm2cWsFai

— Coinwaft (@coinwaft) November 25, 2025

In policy and adoption news, Texas became the first U.S. state to purchase Bitcoin for a strategic reserve, allocating $10 million from general revenue, half of which was acquired on November 20.

At the federal level, Rep. Warren Davidson introduced the Bitcoin for America Act, proposing that the U.S. could build a national Bitcoin reserve partly by accepting taxes in BTC.

🚨 JUST IN: CONGRESSMAN WARREN DAVIDSON SAYS THE US COULD FUND ITS BITCOIN RESERVE BY ACCEPTING TAXES IN BTC. pic.twitter.com/LWp6knbUKo

— Coinwaft (@coinwaft) November 25, 2025

Globally, corporate accumulation continues as MetaPlanet secured a $130 million raise backed by Bitcoin collateral to further expand its treasury holdings.

Bitcoin Tests $87K Support as RSI Hits Oversold and Liquidity Clusters Build Below

Bitcoin trades at $87,149, breaking below the 78.6% Fibonacci retracement level at $88,281. The price sits beneath the 7-day simple moving average of $87,980, confirming short-term bearish pressure.

The Relative Strength Index dropped to 29.89, approaching deeply oversold territory below 30. The RSI declined steadily since October, showing persistent selling pressure without bullish divergence signals yet.

The MACD indicator stands at negative 5,186.66, with the signal line above and red histogram bars indicating accelerating downside momentum. Volume analysis shows increased selling pressure during recent declines.

Bitcoin’s liquidity map reveals a short-term bias toward the downside. The $80,000-$83,000 zone holds dense liquidation clusters. A deeper sweep into this area becomes possible if sellers push below $85,000.

Upside liquidity builds around $92,000-$93,000. A reclaim of $89,000 would likely shift momentum and draw price toward that range. Losing $85,000 triggers downside liquidity; reclaiming $89,000 targets low $90,000s.

Resistance levels sit at $88,281, $87,980, $90,000, and $95,000-$98,000. Support zones include $87,000, $85,000, and $82,000-$83,000. The $87,000 level remains critical for near-term price action.

Bitcoin faces confirmed downtrend conditions with lower highs and lower lows since late October. Breaking $87,000 support with volume could accelerate selling toward $85,000 and potentially $82,000.