Bitcoin News Today: Bitcoin Dips Below $87K: Contrarian Signals Hint at Rebound Amid Market Turmoil

Bitcoin's recent volatility has left investors both wary and hopeful, as the cryptocurrency market navigates a complex mix of technical indicators, macroeconomic signals, and shifting capital flows. On November 20, 2025, Bitcoin (BTC) dipped below $87,000, its lowest level in seven months, before rebounding to around $87,300. The broader market mirrored the downturn, with over $914 million in leveraged positions liquidated, including $703 million in long positions, exacerbating bearish sentiment. Yet analysts argue that the selloff may be setting the stage for a rebound, driven by historical patterns and structural factors.

Technical analysis highlights Bitcoin's retesting of a critical support level within a symmetrical rising channel formed since early 2023. This level, breached after October's all-time high of $126,000, could act as a floor for further declines. Meanwhile, Santiment's data reveals a divergence between retail sentiment and market action. Despite widespread fear among retail traders - evidenced by the CoinMarketCap Fear and Greed Index hitting a yearly low of 15 - the market has historically reversed course when such extremes occur. This "contrarian" signal, combined with the U.S. government's anticipated post-shutdown liquidity influx and Federal Reserve easing, suggests a potential rebound akin to 2019's post-crisis rally.

The recent dip also underscored Bitcoin's role as a corporate asset. Michael Saylor's Strategy Inc. (MSTR), the largest corporate holder of BTC, reported a third-quarter net income of $2.8 billion, or $8.42 per share, fueled by a 7% BTC price increase during the period. The firm's holdings expanded to 640,808 BTC by October, reflecting its aggressive accumulation strategy. This corporate adoption highlights Bitcoin's dual identity as both speculative asset and institutional portfolio staple, even as retail traders grapple with its volatility.

Simultaneously, the crypto market's capital flow dynamics are shifting. Bitcoin's dominance - its share of the total market cap - fell to 58.8% in November from over 61% in October, signaling a potential rotation into altcoins. The Altcoin Season Index hit a monthly high of 47, suggesting a gradual but cautious shift in investor appetite. Analysts like ChartingGuy caution that Bitcoin's faster decline compared to altcoins could reflect broader market weakness rather than a true altcoin rally, but the trend remains worth monitoring.

However, the sector's challenges extend beyond price action. A UK National Crime Agency report revealed that a transnational crime network funneled drug profits into Russia via cryptocurrency, underscoring the asset's role in illicit finance despite blockchain transparency. Meanwhile, Aerodrome Finance faced a "front-end" attack, prompting warnings for users to avoid its main domain. These incidents highlight the persistent risks in crypto's infrastructure, even as institutional adoption grows.

For now, Bitcoin's path hinges on its ability to stabilize above $86,300. With macroeconomic uncertainty and regulatory scrutiny looming, investors must weigh technical signals against the broader geopolitical and technological landscape.