Bitcoin News Today: Bulls Face Crucial Test: Can Bitcoin Reclaim Key Thresholds Amid 30% Drop?

Bitcoin's unrealized loss ratio has surged to 8.5%, signaling heightened bearish sentiment as the cryptocurrency market grapples with a sharp correction. The price of Bitcoin (BTC) fell below $87,000 on November 20, 2025, marking a seven-month low and triggering over $914 million in liquidations, with more than $703 million attributed to long-position holders. This has intensified pressure on the asset, pushing its cost basis below the critical 0.75 quantile, historically associated with bear market dynamics.

The sell-off has coincided with record outflows from Bitcoin exchange-traded funds (ETFs), which lost $903 million in a single day, the second-largest outflow since their January 2024 launch. BlackRock's iShares Bitcoin Trust (IBIT) led the exodus, hemorrhaging $355.5 million, while Grayscale's GBTC saw $199.35 million in redemptions. Analysts attribute the outflows to institutional profit-taking and a risk-off shift ahead of year-end, though they caution that this does not signal a structural collapse in demand. "The spot ETF channel remains intact, and the outflow likely reflects tactical rebalancing rather than a wholesale exit," said Bitfinex analysts.

Amid the turmoil, Cathie Wood's Ark Invest has been accumulating shares in crypto-related firms, adding $39.6 million to its holdings of Bullish, Circle Internet, and Bitmine as their stock prices tumbled. The firm's strategy reflects a belief in long-term value, even as short-term volatility persists. "This is a chance for long-term investors to accumulate tokens at lower prices," noted Przemysław Kral, CEO of zondacrypto.

The market's bearish momentum has been amplified by macroeconomic factors. Japan's government approved a $135.4 billion stimulus package on November 21, aiming to cushion inflationary pressures. Paradoxically, Bitcoin fell further, dipping below $85,500 despite its reputation as a hedge against fiscal expansion. Meanwhile, the Federal Reserve's uncertain stance on rate cuts has deepened risk-off sentiment, with odds of a December cut rising to 73.3% per the CME FedWatch tool.

On-chain data underscores the severity of the downturn. A major Ethereum whale liquidated 18,517 ETH via a leveraged loan strategy, realizing a $25.29 million loss, while its remaining 1,560 WBTC tokens face an unrealized loss of $41.12 million. Glassnode analysts highlighted that Bitcoin's price must reclaim the 0.75 cost-basis quantile to halt the bear trend, a level that has historically marked turning points in previous cycles.

Technical indicators offer a glimmer of hope. Bitcoin is retesting the lower boundary of a symmetrical rising channel formed since 2023, with Santiment noting that extreme retail pessimism often precedes reversals. The CoinMarketCap Fear and Greed Index hit a yearly low of 15/100, a level that historically has led to rebounds within months. Miners have also shifted from distribution to accumulation, netting 777 BTC in the last seven days-a sign of stabilizing supply dynamics.

As the market digests these signals, the path forward remains uncertain. While short-term holders face panic selling, "strong hands" appear to be absorbing supply, a pattern seen in prior capitulation phases. With Bitcoin down 30% from its October peak, the coming weeks will test whether bulls can reclaim key technical and on-chain thresholds-or if the bear cycle will deepen.