Bitcoin Collapse Accelerates as Gains Vanish and Sellers Take Full Control
Overview
Bitcoin has experienced a significant decline, dropping from a peak of $92,000. Currently, the price is struggling to maintain levels above $86,500, indicating a shift in market dynamics as sellers take control.
Recent Price Movements
Bitcoin’s decline began after it failed to settle above the $92,000 resistance zone. The price sharply fell below both the $90,500 and $90,000 thresholds, breaking a key bullish trend line that had support at $89,500. This downward movement has seen Bitcoin trading below $88,000 and the 100 hourly Simple Moving Average.
A notable low was established at $86,500, with the price now consolidating losses beneath the 23.6% Fibonacci retracement level of the downward move from the swing high. The market is currently positioned below $90,000, and if it remains beneath the $87,800 resistance zone, further declines could follow.
Resistance and Support Levels
Immediate resistance is identified near the $87,850 level, with the first key resistance at approximately $89,200, aligning with the 50% Fibonacci retracement level. If Bitcoin manages to close above the $89,500 resistance, it may experience a rally towards the $90,650 resistance. Additional barriers for the bulls include levels at $92,000 and $92,500.
Conversely, immediate support is located around $86,500, with the first major support level at $86,000. Should losses continue, the next support zones could be at $85,500 and potentially down to $83,500. The main support sits at $82,200, below which Bitcoin may see accelerated declines.
Impact on the crypto market
- Bitcoin’s recent decline reflects a shift in market sentiment, with sellers gaining control.
- The failure to maintain key resistance levels could lead to further bearish trends.
- Significant support levels are established, indicating potential points for traders to watch.
- The technical indicators suggest a strengthening bearish momentum, which may influence trading strategies.
- Market participants may react to these developments, impacting overall trading volumes and market stability.
Updated: 12/1/2025, 4:12:48 AM
