While traders were caught off-guard this weekend, Bitcoin crashed in dramatic fashion, plummeting 5% in what became its worst performance since November 2018. The crypto titan fell from around $91,500 to $86,950 on Coinbase within hours – and nobody saw it coming. No significant news event linked to the price decline, just a chain reaction of forced liquidations. Just a sudden, brutal drop that wiped out nearly $539 million through liquidations across the crypto market.
November wasn’t kind to Bitcoin either. The asset declined a staggering 16.5%, marking its second-worst month in three years. Market confidence? Gone. Bullish sentiment? Nowhere to be found. So much for those typical November uptrends everyone keeps talking about.
The technical picture looks grim. Bitcoin’s bear flag structure broke below its lower band, suggesting a possible extension to $66,800. Whales aren’t helping matters – they’re sending coins to exchanges like there’s a fire sale, indicating serious distribution pressure. The rising Exchange Whale Ratio of 0.53 suggests whales are preparing to sell rather than accumulate. Despite this current volatility, Bitcoin’s market dominance of 62.7% remains a sign of its entrenched position in the crypto ecosystem. Long-term holders are distributing, not accumulating. Not great.
ETF flows paint a confusing picture. While December 5 saw $164.6 million in inflows, the broader trend shows net outflows of $4.339 billion over four weeks. Seems like institutional investors can’t make up their minds either.
Bitcoin is now testing critical support near $105,000, with the $100,000 gap widening with each downward movement. If historical bear markets are any indication, we could see 60-85% declines from cycle highs. Yikes.
On-chain metrics confirm the weakness. Daily active addresses dropped 8% to approximately 620,000, and 24-hour trading volume decreased 12% to around $35 billion. The liquidation cascade erased a staggering $140 billion from the total crypto market value in just four hours.
Looking ahead, price targets vary wildly. The most pessimistic forecasts suggest Bitcoin could drop to between $44,700 and $55,900, a far cry from October’s record high of $126,198.07.
While some analysts project a $108,918 year-end peak, consensus is building that a genuine bear market may begin in 2026.
