Bitcoin Price Falls Below $90k
FXOpen
Today, the price of Bitcoin dropped below the psychologically significant $90,000 level for the first time since late April, with the decline from last month’s all-time high now approaching -30%.
Why is Bitcoin Falling?
One of the main reasons is the highly leveraged nature of the cryptocurrency market. According to Coinglass, $1 billion worth of positions — mostly longs — were liquidated over the past 24 hours, putting pressure on the price and triggering a cascading effect in the BTC/USD decline.
On the fundamental side, the media highlight growing doubts that the US Federal Reserve will cut interest rates any time soon. The prospect of a prolonged period of tight monetary policy continues to weigh on risk assets, including Bitcoin. This has led to outflows from spot Bitcoin ETFs (around $1 billion last week) and rising market anxiety — the Binance Fear and Greed Index stands at 15, signalling extreme fear.
Technical Analysis of the BTC/USD Chart
Following the explosive rally at the start of October, Bitcoin has been forming a descending channel, and today BTC/USD slipped below its lower boundary.
Bulls may hope that the drop beneath the psychological $90k level will spark a rebound (similar to the price action after the dip below $100k in early November, which resulted in a period of consolidation shaped like a Bull Flag).
Analysts at Santiment also point out that many cryptocurrencies have entered a zone of short-term “extreme oversold” conditions, which could increase the likelihood of a temporary recovery — potentially with a retest of the $100k area.
However, even if a rebound does occur, it is fair to say that the bullish sentiment that characterised early 2025 has been dealt a serious blow.
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*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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