Market Sentiment and Price Action
Bitcoin is trading at $85,844 as of press time after dropping 5% from a $90,417 high to an $85,604 low. This places the price directly under the 0.236 Fibonacci level at $89,114 as the market moves closer to a support zone between $80,685 and $84,000, where buyers last showed real strength. The coming week may further influence sentiment. New data on the U.S. economy will inform interest-rate debates through 2026. Market participants prepare for guidance from policymakers.
Market Pressure Builds as Bitcoin Slips Toward Key Support
Bitcoin trades under clear downward momentum. Price moves continue to follow a declining structure that began above the 0.618 Fibonacci level at $102,757. Each attempt to rebound stalls near $89,114. The latest candle rejected that point again, marked cleanly by a red arrow on the chart.
Trend behavior points to repeated lower highs and lower lows. Each recovery attempt forms beneath the previous swing. The price now approaches the demand block near $80,685. Traders use this zone to gauge the next direction of the market. A drop below that point may open room for deeper losses.
The overhead supply block between $112,000 and $116,400 remains intact. Several rallies failed there in September and October. Bitcoin has not retested that area since breaking lower.
RSI readings show continued weakness. The indicator prints 32.24, while the signal line sits at 32.49. Both readings reflect declining momentum with no bullish divergence. Short-term sentiment continues to weaken.
Volatility Grows as Analysts Recall the ‘Sunday Slam’
Market analysts point to recent volatility across weekend sessions. The Kobeissi Letter noted the pattern by saying, "As seen countless times this year, Friday night and Sunday night often come with large crypto moves." The group added that the latest slump arrived with no clear catalyst.
Bitcoin recorded its worst November since 2018. Price fell 18% during the month. Ether also dropped sharply. Bitcoin fell 4.3% to below $88,000 in early Asian trade, and Ether lost 6% to trade under $2,900.
Sean McNulty of FalconX shared concerns about market flows. "It's a risk-off start to December," he told Bloomberg. He pointed to weak inflows into Bitcoin exchange-traded funds. He also noted the absence of dip buyers. He said his team expects structural headwinds to continue. He added that they monitor $80,000 as the next key support.
President Donald Trump added more attention to monetary policy. He said he selected a nominee for the next Federal Reserve chair. He linked the decision to his preference for lower borrowing costs.
Leverage Traders Face Heavy Losses as Liquidations Surge
CoinGlass data shows intense liquidation activity over the past month. Long-side losses repeatedly crossed $600 million. Peaks exceeded $1.23 billion on multiple dates between 27 October and 30 November. Short liquidations remained smaller, although frequent.
Large liquidation clusters appeared on 30 October, 2 November, 5 November, 12 November, 21 November, and 30 November. Smaller alternating bars filled the periods between those spikes. Traders faced volatility even without major price shocks.
The Bitcoin price line hovered slightly above $80,000 while trending lower. Many traders positioned aggressively during each drop. The market punished that behavior as the price continued to slip. This pattern raises the pivotal question: how long can leveraged traders withstand repeated downside shocks? CoinGlass data also aligns with the broader bearish speculation surrounding Bitcoin’s recent price movement.