Key Points
- The price of Bitcoin (BTC) fell below $90,000 earlier today but has since rebounded to over $91,000.
- The dominant cryptocurrency may drop to $85,000 if selling pressure continues.
The cryptocurrency market has continued its downward trend in November, with Bitcoin losing 5% of its value in the last 24 hours, briefly dipping below $90,000. It has since recovered slightly, trading above $91,000 per coin.
Institutional Demand and Selling Pressure Impact BTC Performance
This bearish trend comes as institutional demand continues to wane. U.S.-listed Bitcoin exchange-traded funds faced withdrawals totaling $254.54 million on Monday, extending an ongoing trend of outflows.
According to data from SoSoValue, over $1.1 billion has been withdrawn from U.S. spot Bitcoin ETFs in the past week. If these outflows persist and intensify, Bitcoin’s price could face further short-term losses.
Moreover, on-chain data for Bitcoin indicates that the asset has not yet hit its bottom, with the average BTC deposit volume exceeding 0.9 on Tuesday, suggesting increasing selling pressure.
Historically, rising average deposit volumes on Binance correlate with intensified selling pressure for Bitcoin. Additionally, Binance Exchange reserves have surpassed 580,000 BTC, indicating ongoing selling pressure amidst low demand in the market.
BTC May Retest Support Level of $85,000
The BTC/USD 4-hour chart reveals a bearish and ineffective trend, with Bitcoin significantly underperforming in recent days. The price has been rejected at the 38.20% Fibonacci retracement level of $106,453 since last Monday, declining over 10% since then.
If the bearish correction continues, Bitcoin may fall toward the next psychological support level at $85,000. The relative strength index (RSI) on the 4-hour chart is currently at 34, reinforcing the bearish momentum. The MACD indicator also suggests that BTC remains in deeply oversold conditions.
However, if Bitcoin shows signs of recovery, it could extend gains toward the resistance level at $94,253.
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