BTC Breaks the $85K Floor — Signs Point to a Deeper Bear Grip

Bitcoin has dropped below $85,000 for the first time in weeks, trading at $83,532.69 and marking an 8% decline in 24 hours. The world’s largest crypto has now lost 14% over the past seven days, falling from the $90,000 threshold it breached few days ago.

Trading volume surged above 53%, with red candles dominating the charts as sellers maintained control. The RSI on the one-hour timeframe sits below 31, approaching oversold territory without signaling a clear reversal. Bitcoin’s descent comes despite some progress in U.S.-China trade discussions.

Market analysts are now eyeing the $82,000–$83,000 range as a critical demand zone. A clean break below could push prices toward $80,000 or deeper liquidity levels.

Bitcoin ETF Outflows Hit $3.79 Billion as Institutional Money Exits

Spot Bitcoin ETFs recorded $3.79 billion in net outflows this month, surpassing February’s $3.56 billion record.

A single-day withdrawal of $903 million on November 20 marked the largest daily exit since the ETFs debuted. BlackRock’s IBIT alone lost 4,108 BTC worth $350.42 million today, according to Lookonchain.

The fund has shed $2.47 billion in November, representing 63% of total net outflows, though it still holds 779,425 BTC. These withdrawals came largely from traditional investors unfamiliar with crypto volatility.

Meanwhile, MSCI may remove MicroStrategy from its indices, potentially triggering $8.8 billion in forced selling.

$MSTR – JPM says MicroStrategy "at risk of exclusion from major equity indices as the January MSCI decision approaches."

"With MSCI now considering removing MicroStrategy and other digital asset treasury companies from its equity indices…outflows could amount to $2.8bn if… pic.twitter.com/gMqlYtcZII

— matthew sigel, recovering CFA (@matthew_sigel) November 20, 2025

A CryptoQuant analyst, IT Tech, warned that ETF buyers face their first real test. Bitcoin’s correlation with equities remains strong as the Nasdaq fell 2% this week amid cooling AI stocks. The Federal Reserve’s balance sheet contraction of $1.5 trillion since 2022 has reduced market liquidity depth.

Bitcoin Shows Oversold Signals Despite Continued Bearish Momentum

Bitcoin breached critical support at $88,500 and trades below all major moving averages, with the seven-day SMA at $92,400.

The RSI14 reading of 24.7 indicates extreme oversold conditions, historically a contrarian buy signal. Over $1 billion in long positions were liquidated on November 21 as stop-losses triggered.

However, some market observers note potential bullish factors. CME FedWatch shows the probability of a December rate cut jumped from under 30% to over 70%.

One X user, @P_Earns24, suggested markets are pressuring the Fed to prevent further risk asset selloffs.

Glassnode data shows Bitcoin’s Mayer Multiple retreating toward the lower bound of its long-term range. This pattern historically precedes demand resurgence and consolidation phases.

Bitcoin’s Mayer Multiple has retraced toward the lower bound of its long-term range, signalling a slowdown in momentum. Historically, such compressions have aligned with value-driven phases where price consolidates and demand begins to step in.
📈https://t.co/QWQCUxgUoA pic.twitter.com/qufyp0opnr

— glassnode (@glassnode) November 20, 2025

Several traders noted the 31% pullback from all-time highs remains within normal bull market corrections.

Exchange reserves remain low while the SuperTrend indicator stays bullish, mirroring patterns from 2020 and 2024 rallies. One technical analyst, @PatDoesCrypto, highlighted two bullish factors: a higher low formation and support at the 38.2% Fibonacci level.

Another trader, @the_real_CJ, identified potential bullish divergence with breakout signals on daily charts.

Bitcoin Tests $83,000 Support as Technical Indicators Flash Oversold

The one-day chart shows Bitcoin around $83K after declining from highs near $120,000. The asset broke below the $100,000 psychological level, which now serves as major resistance alongside $110,000 and $87,500. Support levels stand at $83,000, $80,000, and $66,000.

The RSI reads 22.10, deep in oversold territory below the 30 threshold. The yellow moving average line sits at 33.67, also oversold. The MACD shows strongly bearish configuration with the MACD line at -1,350.24 and signal line at -4,329.49.

However, the MACD remains above the signal line, suggesting potential momentum slowdown. Volume has elevated during the decline, with high readings confirming selling pressure. The histogram at -5,679.73 indicates extreme bearish momentum that may be stabilizing.

The price action displays a distribution pattern from October through November with lower highs. No immediate stabilization signals appear in current price action. The $80,000 level represents crucial support; a break could accelerate moves toward $66,000.

Short-term trajectory remains bearish with downward momentum intact. Any recovery would likely face resistance between $87,500 and $90,000.

Traders await confirmation of trend reversal before establishing bullish positions as Bitcoin tests critical support zones.