Bitcoin Plunges Below $90K: The Real Reasons Behind Today’s Crypto Crash
Bitcoin just got rocked. The flagship cryptocurrency tumbled below the critical $90,000 psychological barrier today, sending shockwaves through the digital asset market. Forget the usual 'buy the dip' chants—this move has traders scrambling for answers.
The Liquidity Squeeze
Market depth evaporated. Large sell orders on major exchanges sliced through thin order books like a hot knife through butter. When bids disappear faster than a banker's promise, even modest selling pressure can trigger an outsized move. It’s a classic case of leverage unwinding in a low-liquidity environment.
Macro Headwinds Return
Risk assets globally caught a chill. Traders are re-pricing expectations around monetary policy, and crypto—still the high-beta poster child—feels the pain first and hardest. When traditional finance sneezes, digital assets can catch a full-blown cold, a dynamic Wall Street loves to watch with detached amusement.
Technical Breakdown
Key support levels at $92,000 and then $90,000 didn't just break—they shattered. That failure triggered a cascade of automated stop-loss orders, fueling a self-perpetuating downward spiral. The charts told a clear story: momentum flipped, and the crowd followed.
So, is this the end of the bull run? Unlikely. It’s a brutal reminder that in crypto, volatility is a feature, not a bug. Corrections shake out weak hands and reset the stage—consider it the market's expensive way of teaching a lesson in risk management. Just another day where digital gold proves it can be as temperamental as the traders who chase it.
Bitcoin fell sharply on Friday, slipping below $90,000 after a wave of Leveraged liquidations hit the market. Selling pressure increased as Bitcoin once again failed to break above a key resistance zone between $92,000 and $94,000, a level it has tested several times this week before pulling back.
More than $200 million in leveraged long positions were liquidated, speeding up the decline. Market sentiment weakened as fear levels rose, and volatility increased across major exchanges.
Support for Bitcoin is currently seen around $89,200, with stronger buying expected near $88,000. A drop below that area could deepen the downtrend. If the price manages to bounce from support, it may attempt another move toward $90,000, though a full recovery would require a sustained break above $94,000. Clearing that level could open the path toward the next target near $100,000.
The correction comes as other major cryptocurrencies also pull back from recent highs. ethereum and several large-cap tokens have shown slowing momentum after briefly entering overbought levels earlier in the week. The market may see clearer direction in the coming days as Bitcoin tests whether support in the mid-$80,000 range can hold against continued selling pressure.
Analyst Ash Crypto said the recent drop in bitcoin from $126,000 to $80,000 has raised concerns about unusual market behavior. The October 10 flash crash, which erased about $19 billion and became one of the largest liquidation events in crypto history, Bitcoin has struggled to recover.
According to his view, U.S. stocks have risen roughly 8% since that day and many have reached new all-time highs, while Bitcoin remains down around 29%. He said that every short-term price increase has been met with strong selling, and that nearly $500 million in liquidations appears in the market on many days.
He argued that if the decline were caused only by leverage, the market WOULD normally rebound quickly. Instead, Bitcoin has kept falling without a significant recovery, which he believes shows that large players may be influencing price movements and triggering liquidations on both long and short positions.
The analyst is hoping for a stronger outlook in the first half of 2026, supported by possible rate cuts, improving liquidity conditions and the end of quantitative tightening.
