Heavy liquidations and falling ETF demand triggered a sharp drop, then created conditions for a potential snap-back. Current momentum signals are mixed but improving.
Bitcoin is trading around 88125.6 USD and recently lost around 30% from its October high by mid-November 2025.
It slipped to the $80k range after aggressive leverage wipeouts and growing market volatility.
More than $1 trillion in crypto value disappeared in a short period, and spot ETF outflows added extra pressure. Despite the drop, early recovery signs are emerging, suggesting the possibility of a quick reversal if conditions align.
RECOMMENDED: Bitcoin Outlook For December: Will It Reclaim $100,000?
Why Did Bitcoin Crash?
Several clear triggers caused the crash. In October, roughly $19 billion worth of leveraged crypto positions were liquidated in a matter of hours. That rapid sell-off caused more forced selling as traders closed positions to avoid further losses.
At the same time, funding rates swung sharply, showing how aggressive trading activity had become. Global markets also turned cautious after a shift in interest rate expectations, which reduced risk appetite.
With fewer buy orders to absorb large sell pressure, the decline accelerated quickly.
ALSO READ: Bitcoin Back Below $100k: Is It Time To Buy?
Could A “Whiplash Rebound” Happen?
A whiplash rebound refers to a fast recovery after an extreme drop. To judge its likelihood, analysts monitor exchange flow trends, funding rate movements, open interest, and ETF activity.
Rising exchange outflows and funding rates moving back toward neutral often reflect fading selling pressure. A drop in open interest may suggest trader surrender, while renewed institutional spot buying can support price recovery.
Year-end Bitcoin price predictions are mixed, ranging around $120k or higher, showing that expert confidence differs widely.
RECOMMENDED: Will Bitcoin Break Out in November? What ETF Flows and CPI Trends Reveal
What To Do Now
- Stay practical
- Set position sizes based on risk tolerance
- Separate long-term holdings from short-term trades
- Avoid reacting during heavy liquidations
- Use clear stop and take-profit levels, and track funding rates and exchange flows for timing.
Conclusion
A sharp recovery may happen but is not guaranteed. Use data, assess risk carefully, and act only when signals align. Staying disciplined matters more than catching the bounce.
Join eToro today and receive $10 in free crypto on your first deposit. Trade crypto, stocks, and ETFs with powerful tools and social investing features like CopyTrader™
Crypto investments are risky and may not suit retail investors; you could lose your entire investment. Understand the risks here
Wondering which crypto to focus on right now?
Our premium members already know.
Since 2017, InvestingHaven’s blockchain research service has been guiding investors through both bull runs and crypto winters.
What makes it different?
Proprietary 15-indicator methodology developed over 15+ years of market research.
Proven track record of spotting major turning points before markets move.
Focused alerts on only the key crypto assets that matter — no noise, no distractions.
Thousands of readers rely on InvestingHaven to stay ahead of the crowd. Now it’s your turn.
Act today and join the original crypto research service — still live and stronger than ever since 2017.
- What’s Going On With Bitcoin & Alts?(Nov 16th)
- This Is What We Want To See The Next 72 Hours(Nov 9th)
- The Next 2 To 3 Weeks …(Nov 2nd)
- A Successful Test of Bitcoin’s 200 dma? (Oct 26th)
- The Ongoing Test Of Bitcoin’s 200 dma Will Be Decisive For The Outcome In Crypto Markets (Oct 20th)
