Bitcoin News Today: Bitcoin's Death Cross and Liquidity Crunch Rekindle 2022 Collapse Fears

Bitcoin's price continues to falter amid a confluence of profit-taking, waning liquidity, and technical breakdowns, with analysts pointing to deeper structural shifts in the crypto market. The world's largest cryptocurrency fell below $94,000 on November 16, triggering a "death cross" as its 50-day moving average dipped below the 200-day average-a bearish signal last seen during the 2022 FTX collapse. The move follows a $340 billion market value erosion since October 10, driven by Trump-era tariff shocks and a broader rotation away from risk assets.

The selloff has intensified as long-term holders accelerate profit-taking. Data from Glassnode shows over 815,000 bitcoin sold by long-term investors in the past 30 days, a record since early 2024. Meanwhile, stablecoin supply-the "lifeblood" of crypto liquidity-has contracted for the first time in two years, signaling a cooling of capital inflows. "The market is clearly not ready to switch to a mode of frenzied optimism," said Alex Kuptsikevich of FxPro, noting that corporate buyer support has waned.

Technical indicators paint a grim picture. Bitcoin remains trapped below its 200-day moving average ($110,000), a threshold critical for sustained recovery. The death cross, coupled with a breakdown below the 50-week simple moving average, has traders bracing for further declines. "This invalidates a major demand zone," said Omkar Godbole of CoinDesk, drawing parallels to MicroStrategy's (MSTR) recent bearish trajectory. If support at $100,000 fails, the next targets could be $86,000 and $82,000, aligning with key moving averages.

Market sentiment mirrors the FTX era. Over $1.1 billion in liquidations occurred in 24 hours on November 14, with $968 million from long positions-triggering comparisons to 2022's crisis according to analysis. The Fear & Greed Index hit an extreme fear reading of 10, while whale selling and ETF outflows amplify downward pressure according to data. "This level of 'down in the gutter' sentiment hasn't been seen since 2022," noted analyst Negentropic according to market reports.

Despite historical precedents-where death crosses have often marked short-term bottoms-2025's macro context complicates forecasts. Mario Nawfal's analysis highlights mixed outcomes: while 2–3 month rebounds averaged 15–26%, 12-month trajectories remain volatile. Colin, a technical analyst, predicts further declines to $70,000 if the death cross confirms a capitulation phase. Conversely, a swift rebound above $107,250 could reignite bullish momentum toward $115,600–$118,000 according to market analysis.

With liquidity tightening and institutional caution mounting, the market faces a critical inflection point. As George Mandres of XBTO Trading observed, "It feels like a dead cat bounce," with crypto's appeal as a risk-on asset dimming amid broader macro uncertainty according to market commentary.