Bitcoin Plunges Below $87k - Here’s Why Bulls Are Loading Up for the Next Leg Up
Bitcoin's sudden dip below $87,000 sends shockwaves through crypto markets—but seasoned traders see opportunity in the chaos.
The Perfect Storm
Whales taking profits combined with overheated leverage positions created the perfect conditions for this correction. Nothing fundamentally broken—just markets doing what markets do best: separating impatient hands from diamond ones.
Technical Bounce Territory
Key support levels are flashing green across trading screens. The $85,000-$86,000 zone represents historical accumulation territory where smart money typically steps in. Fibonacci retracement levels align perfectly with current pricing—suggesting this might be the last discount before the next leg higher.
Institutional Demand Intact
While retail panics, corporate treasuries and ETF inflows continue accumulating at these levels. The same Wall Street firms that mocked crypto five years ago now can't get enough—proving once again that traditional finance always arrives fashionably late to the party.
Market cycles repeat—but never exactly. This dip looks more like a reload opportunity than the beginning of any major downturn. Time to separate the crypto tourists from the permanent residents.
Bitcoin (BTC) price has extended its losses below $87k on Thursday, November 20, 2025. The flagship coin dropped over 5% during the past 24 hours to reach a new seven-month low of about $86.3k before rebounding to trade about $87.3k at press time.
The wider crypto market followed Bitcoin in losses, thus resulting in over $914 million liquidated from leveraged traders. Notably, more than $703 million involved long traders, thus further fueling bearish sentiment via a long squeeze.
Why Bitcoin Price May Rebound Heavily Ahead
Technical support: BTC price is currently retesting a crucial liquidity level
In the weekly timeframe, Bitcoin price has been forming a symmetrical rising channel since early 2023. Since hitting its all-time high of about $126k in October, Bitcoin price has been trapped in a correction mode, thus retesting the lower border of its macro rising channel.
Source: TradingView
Santiment’s inverse trading on retail behavior amid extreme fear of capitulation
According to market data analysis from Santiment, retail traders have shown increased predictions of BTC price falling below $70k. However, Santiment noted that the market tends to move in the opposite direction of the retail traders.
Source: Santiment
The midterm bullish sentiment is bolstered by the extreme fear of further crypto capitulation. Notably, CoinMarketCap’s Fear and Greed Index dropped to its yearly low of about 15/100.
Source: CoinMarketCap
The last time that this index dropped to such levels resulted in a bullish rebound in the subsequent few months.
Historical playout after the U.S. government shutdown
Following the reopening of the U.S. government, liquidity is expected to find its way to the crypto market amid the anticipated Federal Reserve’s Quantitative Easing (QE). As CoinPedia reported, the bitcoin price is likely to experience a similar rebound to the post-U.S. government shutdown of 2019.
