Bitcoin has fallen below the $96,000 level for the first time in several months, extending a multi-week decline. BTC’s continuous dip is rattling the crypto market and shaking confidence at a moment when many expected the opposite. The end of the prolonged U.S. government shutdown, removing a major source of macroeconomic uncertainty, was expected to lift risk assets, including Bitcoin. Instead, the market’s reaction has been muted at best and sharply negative at worst.
The downturn feels counterintuitive; November has historically been one of Bitcoin’s strongest months, with multiple past cycles showing double-digit gains. The decline underscores a shift in sentiment that is not tied to a single headline. Instead, it reflects a blend of profit-taking, cooling momentum, and caution in broader risk markets. Bitcoin’s pullback also follows weeks of overheated derivatives activity and thinning liquidity, which have amplified recent price swings.
Investors had hoped the shutdown resolution would unlock fresh optimism across markets. Previously, Bitcoin has rallied when political gridlock clears. But this time, the digital gold continued sliding, suggesting that traders were already pricing in a policy resolution or were more focused on other macro pressures, including interest-rate expectations and dollar strength.
The situation is now forcing investors to confront a difficult question: is this simply a sharp correction after an overheated run-up, or the early signal of a deeper bear phase?
A Market Searching for Direction
The shutdown’s resolution was widely expected to provide at least a short-term boost. Traditionally, the end of political gridlock tends to calm markets, while clearer fiscal direction supports risk-on sentiment. This time, the opposite seems to be happening.
Macro analysts point to concerns that the shutdown’s aftermath could still trigger economic delays, budget uncertainty, and policy bottlenecks in the months ahead. That lingering uncertainty has left traders cautious, even as equities attempt to stabilise.
Bitcoin’s reaction reflects that hesitation. The drop below $96,000 does not just mark a psychological threshold. It breaks through a level that many technical analysts viewed as a key line of support. Once breached, it fuelled algorithmic selling and accelerated fear across retail and institutional segments.
This is already happening, as long-term holders who usually hold their Bitcoin for more than six months have started to sell. Reports say over 815,000 BTC have been sold in the past 30 days, the highest amount since January 2024. When long-term holders start selling, it is a signal of weakening confidence.
It’s important to note that the pullback resembles previous mid-cycle corrections. Those periods often saw steep declines before the BTC resumed its upward trajectory. Yet, it appears that the market structure looks more fragile this time. Liquidity has thinned, leverage remains high, and recent sentiment surveys show a rapid shift from optimism to anxiety.
Is Bitcoin’s November Myth About to Be Shattered?
Bitcoin’s strong November track record is well-documented across earlier cycles. The month has often delivered outsize gains, fuelled by year-end positioning, holiday spending speculation, and cyclical momentum.
But historical patterns do not guarantee future performance. Market environments change, and this year’s backdrop is markedly different. Regulatory pressures remain high. Global macro conditions are uneven. Adoption growth continues, but not at the pace seen during previous explosive rallies.
The contradiction between a seasonally bullish month and a sharply falling price illustrates the tension now visible across the entire crypto ecosystem. Investors who anticipated a textbook November bounce are being forced to re-evaluate their assumptions.
Still, some stabilising factors remain. Long-term holders are showing relatively steady behaviour, with on-chain data suggesting they are not yet rushing for the exits. Institutional interest, despite cooling, has not reversed. And Bitcoin’s broader narrative, digital scarcity, macro-hedge potential, and technological relevance remain intact.
Whether this downturn evolves into a full-scale bear market depends on what happens next. A quick recovery back above the $96,000 zone would likely calm nerves and signal that the pullback was temporary. Continued decline, however, risks triggering a deeper slide as support levels fall one by one.
As the month progresses, traders will be watching macro-economic data releases, ETF flows, and liquidity conditions for clues. November still has a reputation for surprising upside, and Bitcoin has surprised markets many times before. But with volatility elevated and sentiment cooling, the market appears to be taking a more cautious path than usual.