Bitcoin enters a corrective phase as market structure indicators turn bearish, with traders assessing whether the asset is shifting toward deeper retracement levels. The move comes as price momentum weakens across multiple timeframes.
- •Bitcoin posts its deepest cycle correction at 26.7 percent as trend support breaks, with weekly structure no longer holding previous rebound patterns.
- •Short-term charts show sustained selling pressure, forming lower highs and pushing Bitcoin near $90,000 while volatility rises across the observed period.
- •Market stress index stays elevated, sentiment moves into Extreme Fear, and BlackRock records a $523 million BTC outflow during heavy sell pressure.
Structural Breakdown Signals Risk Shift
Bitcoin is now trading below key trend markers that previously supported its broader uptrend. A member of Crypto Crew University shared a weekly chart showing a confirmed candle close inside the Gaussian Channel, an event not recorded during earlier phases of the current cycle.
This change indicates that the market no longer maintains the same structural lift from the channel’s upper boundary. The same chart shows Bitcoin losing the long-standing 50-week SMA, a level that acted as a structural pivot throughout 2024 and early 2025.
Each prior visit to this region produced rebounds, but the current close below it removes a layer of upward stability. Meanwhile, the RSI has fallen beneath the 50 mid-range, breaking a level historically associated with trend continuation.
The drop into lower territory signals weakening momentum and adds to the caution surrounding the current correction.
Short-Term Price Action Reflects Ongoing Distribution
Short-term data shows a 48-hour period dominated by selling pressure, with Bitcoin forming lower highs across multiple recovery attempts. The move started with a rapid decline early on November 18, and although a brief rally appeared early on the 19th, it failed to alter the broader downward trajectory.
By the end of the chart, price movement pushed toward the $90,000 level, with volatility remaining elevated. The structure resembles distribution, with sellers controlling the directional bias during the observed window.
Bitcoin’s correction has now reached 26.7%, according to market data. This surpasses the 26.5% drawdown recorded in April and marks the largest pullback of the current bull cycle.
Fear Metrics, Stress Indicators and ETF Flows
Sentiment data supports the cautious mood. The Crypto Fear & Greed Index dropped below 10 before rising modestly to 15, keeping the market locked in Extreme Fear.
Historical data from economist Alex Kruger shows that Bitcoin often produces strong forward returns after reaching this zone, with gains recorded across 1- to 180-day windows.
ETF flows added further pressure. Arkham reported that BlackRock recorded its largest single-day Bitcoin outflow, selling $523 million through IBIT. This move contributed to the heightened volatility surrounding the ongoing correction.