Bitcoin News Today: Bitcoin's Descent Masks Bullish Signs-Is a Rebound on the Horizon?

Bitcoin's price has plunged to seven-month lows near $82,000, but emerging on-chain and technical signals suggest a potential shift in momentum. A hidden bullish divergence on the weekly chart-where price action has fallen while indicators like the Relative Strength Index (RSI) show stabilizing or improving momentum-has sparked speculation that selling pressure may be easing. This divergence, highlighted by analysts including Ash Crypto, could precede a significant rebound if confirmed.

The recent downturn has been fueled by a combination of institutional outflows and deteriorating on-chain conditions. Bitcoin spot ETFs recorded a weekly outflow of $1.45 billion as of November 21, marking the fourth consecutive week of withdrawals and deepening concerns about waning institutional demand. Meanwhile, on-chain metrics such as the 7-day EMA of short-term holder (STH) realized losses surged to $523 million per day, the highest since the FTX collapse, underscoring widespread distress among investors. Liquidations have also spiked, with $1.82 billion in losses recorded in the past week, primarily from long positions.

Despite the bearish backdrop, key structural shifts hint at a potential bottoming process. Glassnode analysts noted that Bitcoin's breakdown below $97,000 and subsequent slide to $89,000 has pushed the price below the STH cost basis, a historically bearish signal that often triggers panic selling . Mid-sized investors-holders of 100 to 1,000 BTC-have been steadily accumulating, while larger whale cohorts (1,000–10,000 BTC) continue to distribute, indicating a redistribution of supply according to analysis. Retail investors, meanwhile, have shown net selling over the past 60 days, further complicating the demand picture according to data.

Technical indicators offer mixed signals. The weekly RSI stands at 33, reflecting bearish momentum, but the hidden divergence suggests a potential reversal if buyers step in to absorb selling pressure. On the daily chart, Bitcoin broke below the 78.6% Fibonacci retracement level at $85,569 and now trades near $87,000, with the RSI at 31, indicating oversold conditions according to analysis. Key support levels include the $80,000 psychological threshold and the $89,651 average cost basis of ETF holders, a level that previously acted as a short-term bottom according to market data.

Market participants are also watching MicroStrategy's cost basis at $74,433 and the 100-week EMA at $85,389, which could serve as psychological and technical targets in a deeper correction . If Bitcoin closes below $85,389 on the weekly chart, it could extend the decline toward $71,769, a level not seen since late 2022 according to forecasts. Conversely, a recovery above $85,000 could signal renewed buying interest and a test of the $90,000 resistance zone according to analysis.

The broader market remains fragile, with Bitcoin dominance at 56.6% and most altcoins mirroring BTC's downward trajectory according to market data. However, the emergence of a hidden bullish divergence and accumulation by mid-sized investors suggest that the worst of the sell-off may be behind the market-or at least that a stabilization phase is within reach. Analysts caution that sustained buying pressure from institutional and retail investors will be critical to confirm a trend reversal, but the current mix of bearish fundamentals and emerging technical optimism leaves the door open for a multi-month rebound