Bitcoin News Today: Bitcoin's $87,500 Rebound: Setup for Rally or Slip into $70K?

Bitcoin Rebounds to $87,500 Amid Fragile Market Structure, Analysts Weigh Prospects

Bitcoin (BTC) briefly rebounded to $87,500 in late November 2025 after a sharp selloff that pushed the cryptocurrency to a seven-month low of $86,300 earlier in the week. The price action reflects a volatile market grappling with conflicting signals, as technical indicators, retail sentiment, and macroeconomic factors converge to shape a fragile structure for the world's largest digital asset.

The recent downturn saw over $914 million in liquidations, with long-position holders accounting for more than $703 million of the losses, exacerbating bearish momentum through a self-fulfilling long squeeze according to analysis. Analysts point to a critical juncture in Bitcoin's technical chart, where the price is retesting the lower boundary of a symmetrical rising channel formed since early 2023. A breakdown below this level could signal further declines toward the $70,000–$73,000 support zone, where on-chain data suggests significant accumulation.

Retail sentiment has also turned deeply bearish, with Santiment noting a surge in predictions for BTC to fall below $70,000. However, historical patterns suggest that extreme retail pessimism often precedes rebounds. CoinMarketCap's Fear and Greed Index, which hit a yearly low of 15/100, has mirrored past cycles where similar levels were followed by upward corrections. The last such rebound occurred after the 2019 U.S. government shutdown, with liquidity inflows coinciding with Fed easing measures.

Despite the short-term volatility, some analysts argue that Bitcoin's consolidation near $83,000 could set the stage for a Wave 5 rally. Technical frameworks suggest that a successful breakout above $85,000–$86,000 could target $110,000 or higher. Veteran trader TedPillows emphasized the criticality of this resistance range, warning that a failure to reclaim it could push prices below $80,000.

Macro factors, however, remain a double-edged sword. The U.S. Federal Reserve's uncertain policy trajectory, with rate-cut odds at 69.4% for December, adds to market fragility. Institutional selling, particularly from large holders, particularly from large holders like Owen Gunden-who moved $230 million in BTC to Kraken-has compounded downward pressure. Meanwhile, crypto ETF outflows and regulatory uncertainties, especially for assets like MicroStrategy's Bitcoin holdings, introduce additional risks.

Looking ahead, the coming weeks will hinge on key U.S. economic data and Fed communications. A dovish pivot could reignite liquidity flows to crypto, while hawkish surprises might extend the selloff. For now, the market remains in a delicate balance, with bulls eyeing $94,000 as a near-term target and bears bracing for a test of $75,000 according to market analysis.