Bitcoin experienced a significant decline on Friday, dipping below the $90,000 mark as a wave of leveraged liquidations swept through the market. The cryptocurrency faced mounting selling pressure after failing once more to breach a crucial resistance zone between $92,000 and $94,000—an area it has struggled to surpass multiple times throughout the week.
The recent downturn was exacerbated by the liquidation of over $200 million in leveraged long positions, which accelerated the decline and contributed to a wary market sentiment. As fear levels heightened, volatility surged across major exchanges, prompting traders to reassess their positions.
Current support for Bitcoin is identified at around $89,200, with stronger buying interest anticipated near the $88,000 mark. A fall below this threshold could intensify the negative trend, while a rebound from these levels might provide an opportunity for Bitcoin to attempt another climb towards $90,000. However, a complete recovery would necessitate a decisive break above $94,000, which could pave the way for a target near $100,000.
This correction in Bitcoin’s value aligns with a broader retreat in the cryptocurrency market, as several major digital currencies, including Ethereum, have also pulled back from their recent peaks. After experiencing briefly overbought conditions earlier in the week, these cryptocurrencies are now facing diminishing momentum. Market participants are anticipating a clearer directional trend in the days ahead as Bitcoin tests its strength against support levels in the mid-$80,000 range amidst ongoing selling pressure.
Analyst Ash Crypto highlighted concerns over the unusual behavior in the market, particularly following the dramatic drop in Bitcoin’s price from $126,000 to $80,000. Notably, the flash crash on October 10, which resulted in the loss of approximately $19 billion and marked one of the largest liquidation episodes in cryptocurrency history, has left Bitcoin struggling to mount a recovery.
While U.S. stocks have surged roughly 8% since the crash and some have achieved new all-time highs, Bitcoin has remained down about 29%. According to Ash Crypto, every short-term uptick in Bitcoin’s price has been met with significant selling pressure, resulting in nearly $500 million in liquidations nearly every day. He speculated that if the market decline were solely attributed to leverage, one could expect a quick rebound. However, the persistent downward momentum without a substantial recovery suggests that major players may be manipulating price movements and triggering liquidations on both long and short positions.
Looking forward, the analyst is optimistic about a more favorable outlook in the first half of 2026, bolstered by potential rate cuts, enhanced liquidity conditions, and a shift away from quantitative tightening.
