Bitcoin is now trading in a price region where trader behavior, rather than long-term fundamentals, appears to be dictating direction.
Key Takeaways:
- Bitcoin’s direction now hinges on whether the $80K support zone holds.
- Selling pressure is driven mainly by recent buyers, whales, and ETF outflows.
- A break below $80K could open the door to a move toward $74K.
Analysts say that the cluster of buy orders sitting just above the $80,000 level has become the focal point of the market, because a breakdown below that price could trigger an entirely new wave of selling pressure.
The benchmark cryptocurrency is currently priced around $84,482, down nearly 7% over the past day, with most of its year-to-date gains erased.
$BTC realized losses have surged to levels last seen during the FTX collapse, with short-term holders driving the bulk of the capitulation. The scale and speed of these losses reflect a meaningful washout of marginal demand as recent buyers unwind into the drawdown.… pic.twitter.com/hAmZPOM5XZ
— glassnode (@glassnode) November 21, 2025
The Source of Selling: Recent Buyers, Not Long-Term Holders
The slump is being fueled primarily by newer market participants, according to on-chain analytics firms. Realized-loss data has climbed sharply and is now comparable to the capitulation seen during the collapse of FTX. Glassnode’s metrics show that wallets holding coins purchased during recent months are leading the sell-off, suggesting that short-term confidence has deteriorated rapidly.
Large Wallet Liquidations Intensify the Downturn
Momentum on the downside has been amplified by major Bitcoin disposals from early adopters. Arkham Intelligence flagged activity from the wallet belonging to Owen Gunden, representing a sale of roughly 11,000 BTC — around $1.3 billion — since late October. The most recent transfer landed on Kraken, and concentrated liquidations of this size tend to remove liquidity and accelerate declines during periods of market stress.
Institutions Shift From Net Buyers to Net Sellers
Institutional flows are no longer absorbing selling pressure. U.S. spot Bitcoin ETFs registered heavy redemptions in mid-November, including a single-day withdrawal of approximately $523 million from BlackRock’s IBIT.
Analysts view the reversal in ETF demand as a major contributor to Bitcoin’s inability to stabilize after whale-driven volatility.
Technical Models Reinforce the Bearish Scenario
Market watchers are focused on indicators that historically track multi-week price movements. Analyst Ali Martinez noted that the weekly SuperTrend flipped bearish, a signal that in previous cycles has accompanied extended downturns.
Another analyst, Ted Pillows, reviewed live Binance trading data and found dense buy-order walls around $80,000 to $82,000, calling it the “line of defense.” If that support breaks, he estimates potential downside toward $74,000.
Outlook
Bitcoin’s next major move is expected to depend on whether the $80,000 zone absorbs ongoing selling or fails under pressure from whales, short-term holders, and institutional outflows. Until that threshold is either defended or surrendered, the market remains direction-biased to the downside rather than recovery.
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 an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/analysts-warn-of-deeper-correction-if-bitcoin-loses-the-80000-floor/