Bitcoin Plunges Below $90K, Sparking Over $1 Billion in Crypto Market Liquidations

The cryptocurrency market experienced a dramatic shakeout as Bitcoin dropped below the $90,000 mark for the first time in seven months, leading to over $1 billion in liquidations across various trading platforms in the last 24 hours. According to Bull Theory on Twitter, this event marks a significant downturn, highlighting the volatility inherent in crypto trading. Traders who were heavily leveraged in long positions faced massive losses as the price of BTC/USD pair on major exchanges like Binance and Coinbase tumbled, triggering forced sell-offs. This liquidation event underscores the risks of high-leverage trading in a market sensitive to macroeconomic shifts, with Bitcoin's price movement directly impacting altcoins and overall market sentiment. As of the report on November 18, 2025, the drop below $90K serves as a critical support level breach, potentially signaling further downside if buying pressure doesn't materialize soon.

In analyzing this market event, it's essential to consider the trading volumes and on-chain metrics that accompanied the decline. Data from blockchain explorers shows a spike in transaction volumes as liquidated positions flooded the market, with Bitcoin's 24-hour trading volume surging past $50 billion across spot and derivatives markets. Key trading pairs like BTC/USDT exhibited heightened volatility, with price wicks testing levels as low as $88,500 during the intraday low on November 18, 2025. Market indicators such as the Relative Strength Index (RSI) on the daily chart dipped into oversold territory below 30, suggesting a potential short-term rebound opportunity for swing traders. However, the Moving Average Convergence Divergence (MACD) displayed a bearish crossover, reinforcing the downward momentum. Institutional flows, as tracked by on-chain analytics, revealed large wallet movements from exchanges, indicating possible whale capitulation or strategic repositioning amid the liquidation cascade.

Trading Opportunities Amid the Crypto Downturn

For traders eyeing entry points, this liquidation event presents both risks and opportunities in the crypto space. Support levels around $85,000 to $88,000 could act as potential reversal zones, especially if correlated with positive developments in stock markets like the S&P 500, which often influences Bitcoin's trajectory. Cross-market analysis shows that as traditional equities faced pressure from inflation concerns, crypto assets amplified the sell-off, with Ethereum (ETH) and Solana (SOL) also seeing double-digit percentage drops in the same 24-hour period. Savvy traders might look at options strategies, such as buying put options on BTC futures to hedge against further declines, or accumulating spot positions during dips for long-term holding. Market sentiment, gauged by the Fear and Greed Index, plummeted to extreme fear levels, which historically precede bounces, offering contrarian trading signals. Always monitor real-time data for volume spikes that could indicate capitulation bottoms.

Broadening the perspective, this Bitcoin drop correlates with wider economic factors, including rising interest rates and geopolitical tensions, which have dampened investor appetite for risk assets. On-chain metrics from sources like Glassnode reveal a decrease in active addresses and an increase in coins moved to cold storage, suggesting a shift towards hodling rather than speculative trading. For those trading altcoins, pairs like ETH/BTC showed relative strength, potentially offering arbitrage opportunities. As the market digests this liquidation wave, watch for resistance at $92,000 on any recovery attempts, with breakout above this level possibly reigniting bullish momentum. In summary, while the immediate outlook remains cautious, historical patterns of recovery after major liquidations provide hope for resilient traders navigating this volatile landscape.

Overall, this event emphasizes the importance of risk management in crypto trading, such as setting stop-loss orders and avoiding excessive leverage. With Bitcoin's market cap contracting by over 5% in the session, the ripple effects extend to decentralized finance (DeFi) protocols, where total value locked (TVL) saw minor outflows. Traders should stay informed on upcoming economic data releases, like CPI reports, which could further influence price action. By focusing on verified on-chain data and market indicators, investors can better position themselves for the next phase of this bull-bear cycle in cryptocurrencies.