Bitcoin tumbles under $90k amid rising macro concerns
Bears are firmly in control of the crypto markets as Bitcoin has fallen below the $90,000 threshold for the first time in seven months, marking a significant continuation of the downturn for the leading token. BTC has now experienced a decline of 28 percent from its all-time high of $126,198, reached earlier this year on October 7. Analysts point to uncertainty surrounding potential US interest-rate cuts, a general weakness in equity markets, and profit-taking by major holders as the reasons for the decline. Despite Bitcoin’s recovery to the $90,000 mark, the overall sentiment continues to show signs of fragility. As of this moment, BTC is priced at $90,883.94, reflecting a 5 percent decline over the last 24 hours, accompanied by a trading volume of $115.86 billion in that same timeframe. Throughout the session, the token experienced fluctuations ranging from $89,300 to $95,928, as per data.
Ashish Singhal remarked that the ongoing pullback signifies “a period of short-term volatility across markets.” “While some highlight the death cross, historical patterns have also indicated recoveries in the past.” Overall, the movement indicates a phase of short-term volatility throughout the markets. “For some participants, the pullback may also be viewed as an opportunity to accumulate at lower levels,” Singhal said. However, other analysts warn that the market’s risk-off sentiment could continue. Ryan Lee highlighted the recent Bitcoin death cross — where the 50-day SMA fell below the 200-day SMA — as a bearish technical indicator with historically varied outcomes. “While this pattern sometimes indicates local bottoms followed by short-term rebounds, it has also been a precursor to deeper corrections during prolonged bear phases,” Lee stated.
“In the current environment, defined by stabilizing liquidity, returning institutional flows, and waning expectations for a December rate cut (now near 50 percent odds), traders should remain cautious. “Added pressure from reports such as Tom Lee’s warning about two major market makers facing financial deficits and lingering systemic risks suggests the market’s risk-off tone may persist in the near term,” he added. Lee suggests that this environment could lead to more defensive strategies, such as hedging or selective spot accumulation on platforms like Bitget, as investors prepare for volatility while aiming for a medium-term recovery. Macro headwinds continue to pose a significant challenge for the crypto market. Vikram Subburaj highlighted robust US manufacturing data and diminishing hopes for a December Fed rate cut — factors that have tightened financial conditions. “This has driven risk assets down despite the US government reopening.” Recent inflows into short-Bitcoin products and multi-asset ETPs indicate that institutional investors are strategically hedging their exposure rather than making a complete exit. “This is indicative of traders exercising caution amid low liquidity and conflicting policy signals,” Subburaj stated.
Despite the selloff, analysts noted that on-chain indicators like realised losses and short-term holder capitulation indicate the market might be entering a late-stage correction instead of a full-scale bear reversal. From a technical standpoint, Subburaj emphasizes that investors should consider the $92,000–$90,000 zone as the initial significant line of defense. “It is where futures open interest is compressing and where the market must demonstrate buy-side intent following the $91,000 low.” Include only if spot leads perps and we observe a clear hold or reclaim above $92,000. If the band weakens on increasing spot selling, it’s advisable to step back and await the next demand cluster instead of averaging down. “Keep risk in BTC/ETH,” he stated. Riya Sehgal noted that Bitcoin is presently testing the $89,000–$91,000 support area — a crucial zone that could initiate a short-term bounce if buyers step in to defend it.
