Bitcoin slipped under $86,000 in early-morning trading on November 21, extending a sell-off that has now become one of the steepest drawdowns of the entire cycle. The latest leg down unfolded violently, where Bitcoin broke through support and accelerated lower while equities and metals continued printing fresh highs, a contrast that only intensified market frustration.
DaanCrypto, whose cycle-tracking work has been remarkably consistent over the last two years, noted that this correction is now "in line with the previous larger drawdowns," but with a twist: this time, the hit to altcoins was catastrophic. The now-infamous 10/10 flush wiped out liquidity across the board, triggering forced liquidations that amplified the downside and left many traders sidelined.
Why This Sell-Off Feels Worse
The market is dealing with a rare confluence of pressure points. Bitcoin has been hit by macro rotation, strong equity performance, and persistent large-whale distribution, a combination visible in DaanCrypto’s historical drawdown map, where past drops tied to geopolitical shocks, ETF manias, bank failures, and Mt. Gox distributions each carved out sharp but isolated declines.
This time, however, the correction has lasted more than 46 days, mirroring the severity of the major liquidation phases that marked earlier cycle inflection points.
Adding to the strain, overnight volume showed clear evidence of systematic selling. Multiple liquidity pockets were taken out in succession, echoing the late-cycle liquidation events of 2023–2024.
Altcoins Take The Hardest Hit
While Bitcoin’s decline was steep, the altcoin market absorbed the true devastation. High-beta names fell far faster, with several majors dropping multiple percentage points in minutes during the deepest part of the move. This aligns with DaanCrypto’s observation that the 10/10 flush “completely destroyed alts,” leaving only the most liquid assets with any structural support.
Traders now face an environment where Bitcoin dominance is rising, altcoin market depth is thin, and volatility remains elevated, conditions historically associated with late-cycle resets rather than sudden reversals.
What Comes Next?
Cycle-based models suggest that if Bitcoin continues to mirror past drawdowns, the market may be nearing the late stages of capitulation. However, momentum remains fragile, and any further whale-driven selling could test lower levels before a meaningful rebound forms.
For now, Bitcoin’s drop below $86,000 marks another chapter in what has quickly become the most emotionally charged correction of the year, one unfolding while traditional markets rally to all-time highs, leaving crypto traders feeling the full weight of the downturn.