Bitcoin Faces Potential Downside to $83K After 6% Weekend Sell-Off

• Low liquidity triggered the Bitcoin price drop, mirroring November conditions but less extreme.

• The sell-off liquidated $650.67 million across markets, heightening fear amid Tether insolvency concerns.

• Structural analysis points to potential further declines toward $80.6k, with dense liquidation clusters at $83.3k-$85.5k.

Explore the Bitcoin price drop below $90k: causes, impacts, and key levels. Stay informed on crypto trends with expert insights. Read now for trading strategies amid market volatility.

What Caused the Recent Bitcoin Price Drop?

Bitcoin price drop occurred over six hours late Sunday into early Monday, driven by low liquidity that amplified a sizeable sell-off. The cryptocurrency fell 6.16%, breaching the $90k mark after $92k acted as short-term resistance. This event echoed bearish patterns from November 21, though not as severe, according to crypto analyst Maartunn, and was compounded by market-wide fears including potential Tether insolvency tied to drops in gold and Bitcoin.

The incident led to extensive liquidations, with CoinGlass data reporting $650.67 million in positions wiped out at press time. Such volatility underscores the fragility of thin weekend trading volumes, where even moderate selling can cascade into significant declines. Traders monitoring on-chain metrics noted bearish net taker volume as a key indicator of this pressure.

Source: Maartunn on X

What Are the Structural Trends in Bitcoin’s Market?

Bitcoin’s structural trends reveal persistent bearish pressure, with the recent price drop halting a brief weekly rebound before reaching the 50% retracement at $94k. From a November high of $107.5k, the asset has seen limited recovery periods, sliding to $80.6k lows. The next downside target aligns with the $74.2k Fibonacci extension, coinciding with April’s market bottom around $74k-$76k.

Technical analysis from TradingView charts indicates intense selling, with on-balance volume (OBV) showing steady distribution on daily timeframes. The relative strength index (RSI) remains below 50, confirming bearish momentum without signs of bullish divergence on 1-day or 4-hour charts. Liquidation heatmaps from CoinGlass highlight dense clusters at $83.3k-$85.5k, suggesting a high probability of further drawdowns to sweep this liquidity.

Between $86k and $92k, liquidation buildup is sparse due to the rapid November decline, leaving room for potential range formation or a quick upside push to $95k after testing lower levels. Crypto markets often exhibit such patterns, where liquidity hunts precede directional moves. Expert observers, including on-chain analysts, emphasize monitoring these zones for short-term bounces or continued downside.

Structural trends: Where Bitcoin stands

Source: BTC/USDT on TradingView

The two-week liquidation data further illustrates market dynamics, with potential for Bitcoin to either consolidate in a range—building liquidations at extremes—or accelerate toward the $95k magnetic zone post-$84k sweep. Historical precedents from similar low-liquidity events in 2025 show that such patterns often resolve with liquidity-driven volatility before stabilizing.

Broader context includes macroeconomic factors, such as correlations with traditional assets like gold, which have amplified recent fears. Institutional flows, tracked via on-chain reports, indicate reduced inflows during this period, contributing to the downward bias. Analysts from platforms like Glassnode have noted similar OBV trends in past corrections, reinforcing the current bearish structure.

Source: CoinGlass

In terms of momentum, volume readings align with this outlook. The OBV’s downward trajectory signals ongoing distribution, while RSI’s sub-50 position lacks reversal signals. These indicators, combined with liquidation maps, provide a comprehensive view of Bitcoin’s positioning in late 2025.

Frequently Asked Questions

How much was liquidated in the recent Bitcoin price drop?

The Bitcoin price drop resulted in $650.67 million worth of positions liquidated across major exchanges, per CoinGlass data. This figure captures the market-wide impact of the 6.16% decline, primarily affecting leveraged trades during low-liquidity hours.

What support levels should traders watch after Bitcoin’s drop below $90k?

After the drop below $90k, key support levels include $80.6k as an immediate target, followed by the $83.3k-$85.5k liquidation zone and long-term floor at $74.5k. These areas, informed by Fibonacci extensions and historical lows, could prompt bounces or further tests in the coming sessions.

Key Takeaways

• Bearish net taker volume drove the Bitcoin price drop: Low liquidity amplified selling, leading to a 6.16% decline and $650.67 million in liquidations.
• Structural resistance at $94k remains untested: The weekly bounce stalled early, with downside targets at $80.6k highlighting continued pressure.
• Monitor liquidation clusters for volatility: Dense levels at $83.3k-$85.5k suggest potential sweeps, advising caution for traders entering positions.

Conclusion

The Bitcoin price drop below $90k underscores persistent structural trends and liquidity vulnerabilities in the crypto market. With bearish indicators like declining OBV and sub-50 RSI dominant, support at $80.6k and $74.5k looms large. As 2025 progresses, investors should track these levels closely for opportunities, staying vigilant amid evolving on-chain dynamics.

Momentum and volume readings

The OBV on the daily timeframe showed steady selling pressure, and the RSI below neutral 50 reflected bearish sentiment. There was no evidence of a bullish divergence of any kind on the 1-day or 4-hour timeframes.

Mapping the structural floors and ceilings

The $94k was a technically important resistance level. Liquidation levels around $95k also made it an enticing target to the upside. The immediate targets were downward. A revisit to $80.6k, the low made last Friday, is expected in the short term. On the way, the $83.3k-$85.5k could trigger a price bounce after a sweep of this magnetic zone. Further south, the long-term support at $74.5k beckoned.

Final Thoughts

• The overarching trend of Bitcoin remains firmly bearish, so any price bounces are for selling.
• It remains to be seen if Bitcoin will form a range and build up liquidity on either side, or race higher to $95k before dumping lower once again. Traders need to be prepared.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion