Bitcoin Attempts Recovery After Brutal Sell-Off as Analysts Warn of Much Deeper Risk
Bitcoin is trying to climb back on its feet after one of the sharpest market shake-ups of the year.
- Bitcoin is recovering near $87,000 after a sharp sell-off and heavy liquidations.
- Shorts were hit harder, suggesting aggressive late-stage bearish positioning.
- Oversold indicators hint at a possible bottom, but monthly MACD signals risk of deeper downside.
The cryptocurrency is trading around $87,000 at the time of writing, showing mild intraday gains following a violent wave of liquidations that rattled investor confidence across the digital-asset market, pushing the price to almost $80,000.
Fresh derivatives data shows $66.52 million in Bitcoin liquidations, with shorts accounting for the majority ($43.53M) while longs lost $22.99M. Despite the slight rebound, sentiment remains fragile as traders debate whether the correction is ending or just beginning.
Heavy Selling Pressure Eases but Recovery Still Faces Strong Resistance
The recent upmove follows a steep plunge that sent Bitcoin rapidly through multiple support zones. The RSI — which recently collapsed to deeply oversold territory — is now attempting to stabilize, a zone that historically preceded strong bullish reversals only six times in Bitcoin’s entire price history, based on data shared by Crypto Rover.
Bitcoin has reached RSI levels this low ONLY six times in history. pic.twitter.com/jDhS2kpgUC
— Crypto Rover (@cryptorover) November 24, 2025
Short-term momentum is improving, but the broader picture remains unclear. On the 4-hour chart, buyers are returning near the $86,000–$87,000 range, yet indicators like the MACD remain structurally bearish, signaling that the recovery has not yet shifted larger-timeframe momentum.
Analysts Split: Bottoming Event or the Start of a Larger Meltdown?
Market strategists are sharply divided on what comes next. Big-picture analysts warn that Bitcoin may not be out of danger. Ali, a widely followed market watcher, pointed out that each time the monthly MACD turned bearish in past cycles, Bitcoin eventually fell roughly 60% on average. If that pattern repeats, it would imply a potential drop toward $40,000.
The last three times the monthly MACD turned bearish, Bitcoin $BTC dropped about 60% on average.
If that repeats, the chart points to $40,000. pic.twitter.com/yu7Sm2MBvb
— Ali (@ali_charts) November 24, 2025
On the other hand, bullish analysts emphasize the historical rarity of current oversold conditions, arguing that long-term accumulation zones have typically formed when fear reached extremes.
They also note that participation remains strong: the global crypto market cap has risen 1.61% to $2.97 trillion, and Bitcoin 24-hour volume surpassed $64.5 billion, suggesting the downturn has not pushed investors away.
Critical Levels Ahead Will Determine Whether Panic Turns Into Consolidation
Bitcoin’s price performance over the next few trading sessions could define the market narrative heading into December. If bulls can defend support in the mid-$80,000 range, the recent breakdown may transition into a sideways consolidation phase.
But if that floor gives way again, fears of a deeper bear-market structure — like the one projected by the MACD model — could escalate rapidly.
For now, Bitcoin remains suspended between fear and resilience — rebounding from oversold territory, yet still overshadowed by the possibility of a far larger correction.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
