Bitcoin Breaks Below $90K, Eyes $70K Support Zone

Bitcoin’s decisive break below the psychologically significant $90,000 level represents a major technical setback for the cryptocurrency. According to recent data from CoinGecko, BTC has fallen roughly 17% over the past month and over 6% in the last 24 hours alone, pushing the asset to prices not seen since April. This decline triggered substantial market liquidations across the crypto ecosystem, reflecting the intensity of the selling pressure that has gripped the market.

The breakdown below $90,000 is technically bearish and marks what analyst CryptoOnchain describes as a new corrective phase for Bitcoin. The breach of this key level has established a new trading range between $70,000 and $90,000, with the Point of Control (POC) – the price level with the highest traded volume – sitting near $83,000. This POC level could act as a magnet for the price, potentially leading to a period of consolidation before the next major directional move.

The selling pressure was significantly amplified by activity from long-term Bitcoin holders who had remained dormant for years. Analytics firm Arkham revealed that early Bitcoin adopter Owen Gunden moved $230 million in BTC to the Kraken exchange, introducing substantial sell-side pressure from an unexpected source. This transaction was part of a larger sell-off that saw the entity dispose of 11,000 BTC, worth approximately $1.3 billion, since October.

Such large-scale movements from long-term holders typically signal important market shifts. When early adopters who have held through multiple market cycles begin distributing their positions, it often indicates a change in market dynamics. The timing of this $1.3 billion disposal coincided with Bitcoin’s decline from its recent highs, suggesting these sales contributed meaningfully to the downward pressure that ultimately broke the $90,000 support level.

According to CryptoOnchain’s assessment, the most important area of interest for traders now lies in the $70,000-$73,000 band. This zone represents more than just a major technical level – its importance is heavily reinforced by on-chain data showing it aligns with the average acquisition cost, or Realized Price, of large Bitcoin holders. The metrics shared by the expert indicate that entities holding between 100 and 1,000 BTC have a collective cost basis of approximately $71,000.

Historically, when the market price approaches the average purchase price of major investor groups, these holders often step in to buy more to defend their positions, creating a powerful support floor. This behavioral pattern has proven significant in previous market cycles, as large holders seek to protect their unrealized gains and maintain their strategic positions in the asset. The convergence of technical support with this on-chain cost basis creates a strong confluence that could determine Bitcoin’s medium-term trajectory.

Current market sentiment, as tracked by analytics platform Santiment on November 20, reflects the ongoing fear and uncertainty in the crypto space. Social media platforms are filled with a mix of optimism from traders looking to buy the dip and pessimism from those predicting further losses. This divergence in sentiment is typical during corrective phases, where market participants struggle to gauge the ultimate depth and duration of the downturn.

CryptoOnchain suggested that a true market bottom often forms when retail sentiment becomes overwhelmingly negative, marked by a surge in predictions for prices below $70,000. This contrarian indicator has historically proven reliable in cryptocurrency markets, where extreme pessimism frequently coincides with local bottoms. As Bitcoin tests the lower bounds of its new trading range between $70,000 and $90,000, market participants will be watching sentiment indicators closely for signs of capitulation that could signal a reversal opportunity.