Bitcoin has slipped below the $87,000 mark once again, extending a painful week for the world’s largest cryptocurrency.
The cryptocurrency is facing mounting pressure as a combination of institutional outflows, miner sell-offs, and bearish technical signals weighs on the market.
Selling pressure mounts across the market
Over the past few hours, Bitcoin has fallen 2.68% to around $86,924 at press time, while experiencing a sharp 12.9% decline over the past week.
The plunge comes as the market is rattled by several factors, chief among them being large-scale miner sell-offs.
On November 20 alone, miners unloaded approximately $172 million worth of Bitcoin, the largest outflow in six weeks.
This wave of profit-taking comes as miners respond to the volatility and the failure of Bitcoin to reclaim the psychologically significant $90,000 level.
Miners’ liquidations often signal short-term bearish sentiment because operational costs force them to sell during downturns, adding immediate pressure on prices.
At the same time, technical indicators have reinforced the negative momentum.
Bitcoin has broken below key support levels, including the $90,000 mark, triggering automated sell orders and contributing to $1.33 billion in leveraged liquidations over the last 24 hours.
The Relative Strength Index (RSI14) now stands at 29.42, suggesting oversold conditions, while the MACD histogram at -921.46 signals ongoing bearish momentum.
The 7-day simple moving average, currently at $94,332, now acts as resistance, making it harder for Bitcoin to stage a near-term recovery.
Eyes are now on the next Fibonacci support level at $85,000, which could determine whether BTC continues to slide toward $76,000.
Institutional outflows deepen the slump
Adding to the selling pressure, institutional investors have been withdrawing funds from spot Bitcoin ETFs.
On November 20 alone, ETFs recorded $278 million in outflows, with major players like BlackRock and Fidelity leading the withdrawals.
Historically, ETF flows have played a crucial role in stabilising Bitcoin prices, and sustained outflows risk exacerbating downward movements.
The shrinking demand from institutional investors signals a waning appetite for risk and leaves the market more vulnerable to sudden swings.
The broader crypto market has also felt the impact, with Ethereum, XRP, and Solana all posting declines of more than 2% in the last 24 hours.
As a result, total liquidations across the market have reached $695 million, of which $493 million were long positions.
These figures underline the scale of panic selling and highlight a market currently dominated by fear, as reflected in the Crypto Fear and Greed Index, which now sits at 15 points, firmly in the “Extreme Fear” zone.
Fed outlook adds to uncertainty
Bitcoin’s latest slump is also linked to macroeconomic developments, particularly the Federal Reserve’s recent policy outlook.
The minutes of the Fed’s October meeting revealed that officials are carefully monitoring the cooling labour market, which has shown only gradual weakening, while inflation remains elevated.
The central bank’s decision to cut interest rates by 25 basis points last month was tempered by caution, and the prospect of further cuts in December has diminished.
Morgan Stanley has indicated that it does not expect a rate reduction, which has fueled sell-offs in high-risk assets such as Bitcoin.
Investors sensitive to interest rate decisions are now adjusting their positions, further contributing to the market’s volatility.
Bitcoin price outlook
Despite the current decline, some believe that oversold conditions (indicated by the RSI) may provide a short-term opportunity for a bounce, although reclaiming $90,000 is critical to halt further losses.
The next few trading sessions will be pivotal, as miners, institutional investors, and retail traders navigate a market where both technical signals and macroeconomic factors are exerting strong downward pressure.
For now, Bitcoin remains at a precarious juncture, with investor sentiment fragile and the potential for continued volatility high.
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