Bitcoin News Today: Bitcoin Tests Key Support as Extreme Fear Signals Potential Rebound

Bitcoin's price has plunged to a seven-month low, sparking renewed debate over whether the market is nearing a critical inflection point. Analysts from Bitwise and other firms are highlighting a "max pain" zone between $84,000 and $73,000, where heavy selling pressure and extreme bearish sentiment could trigger a rebound. The cryptocurrency, which fell below $87,000 on Nov. 20, 2025, has since stabilized near $87,300, though the broader crypto market has seen over $914 million in leveraged positions liquidated, with long traders accounting for $703 million of that total according to analysis.

Technical indicators suggest Bitcoin is testing a crucial support level. On the weekly chart, the asset has been confined to a symmetrical rising channel since early 2023, with its recent decline retesting the lower boundary of that pattern. Santiment's analysis underscores the inverse relationship between retail sentiment and price movements, noting that while retail traders are predicting a drop below $70,000, historical trends show the market often moves in the opposite direction. This dynamic is amplified by the Crypto Fear & Greed Index, which sank to an annual low of 15 out of 100-a level that has historically preceded sharp rebounds.

The current correction has become the largest of the bull market cycle, with Bitcoin down 26.7% from its peak. This has triggered elevated stress metrics, including a local stress index of 67.82, per Bitcoin researcher Axel Adler Jr., which remains above a critical threshold but below levels seen during prior breakdowns according to data. Adler's data also show realized volatility spiking to a 4.55 Z-score during the Nov. 18 sell-off, signaling aggressive liquidation. Meanwhile, economist Alex Kruger highlighted that Bitcoin has historically gained 10% within a week and 33% over six months following Fear & Greed Index dips below 10-a pattern that could repeat as the index currently hovers near 15 according to analysis.

Historical parallels are also drawing attention. The 2019 U.S. government shutdown saw a similar rebound after a prolonged liquidity crunch, with analysts suggesting Federal Reserve quantitative easing could reflate crypto markets according to reports. Mike McGlone of Bloomberg Intelligence noted the 200-day moving average turning lower, a technical signal often associated with bearish momentum, but stressed that the current price action resembles "classic peak bull-market stuff" as the market digests macroeconomic uncertainty.

Recent data show a partial recovery, with Bitcoin rebounding nearly 2% to $92,621 on Nov. 19, according to CoinSwitch Market Desk. The broader market gained 2.3%, outperforming traditional assets as investors showed appetite for dips, the firm said. However, challenges remain: U.S. interest rate uncertainty, equity market weakness, and large holders trimming positions are cited as headwinds according to market analysis.

The path forward hinges on whether Bitcoin can break above $94,000, which would open the door to $95,000 and potentially rekindle bullish momentum. For now, the "max pain" zone remains a focal point, with Bitwise analysts cautioning that capitulation levels could trigger a reversal-if history holds.