Bitcoin prices have fallen sharply by nearly 29%, dropping about $37,000 from the peak recorded on October 6, 2025, at around $126,200, down to yesterday’s low of approximately $89,200. This decline marks Bitcoin’s official entry into a bear market, wiping out all its gains for the year and turning its year-to-date performance negative by 3%. Bitcoin is currently trading slightly above the psychological level of $90,000, at around $91,000.
The key factors weighing Bitcoin prices include:
- Continuous outflows from Bitcoin exchange-traded funds (ETFs) for the fourth consecutive week.
- A decline in the value of assets held by Bitcoin ETFs over the past six weeks.
- Persistent and significant outflows from traded crypto investment products over the last three weeks.
- Reduced market expectations for an interest rate cut at the Federal Reserve meeting on December 10, with odds falling below 50% after previously exceeding 90% a month ago. This shift follows a series of hawkish comments from Fed officials, putting pressure on Bitcoin as a non-yielding asset.
- A broad risk-off sentiment in high-risk assets—particularly in equities and cryptocurrencies—as markets experience heavy selling, especially in AI-related tech stocks due to stretched valuations and fears of a new bubble. A strong correlation between these tech stocks and cryptocurrencies is evident at this stage.
Technical indicators continue to signal strong bearish momentum in Bitcoin, supported by the following developments:
- A bearish “Death Cross” between the 50-day and 200-day moving averages, reinforcing the downward trend.
- The Relative Strength Index (RSI) currently stands at 28, placing it in oversold territory and marking its lowest reading since February 28, 2025, indicating strong bearish momentum.
- The Positive Directional Movement Index (DMI+) is around 8 points, compared with 35 points for the Negative Directional Movement Index (DMI-). The wide gap highlights strong selling pressure. The Average Directional Index (ADX) is around 36 points, indicating a strong downtrend.
- A bearish crossover between the MACD line and the signal line within negative territory, confirming ongoing downward momentum.
The key challenge now for Bitcoin is maintaining support at the psychological level of $90,000.
A break below this level could open the door to further declines toward $85,000 and $75,000 in the near term. However, if Bitcoin manages to hold above $90,000, it may attempt another move toward the $100,000 level.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.
