- Bitcoin regained $89,000 after gaining support at $80,685 amid rising market tensions.
- Selling pressure intensified throughout the market, and the rate of decline sharply increased to approximately 25 trillion yen.
- The Sharpe ratio returned to near 0, indicating an unusual setting seen before major changes.
Bitcoin has regained the $89,000 level after rebounding from the support zone around $80,685. This move precisely touched the lower end of the falling wedge, and this pattern has shaped the entire decline since early November. Bitcoin price broke above the 23.6% Fibonacci level at $89,114, but this breakout was short-lived and Bitcoin retreated to around $87,000 at the time of writing.
The chart showed significant resistance above this area. The 38.2% Fibonacci level was $94,328 and the 50% level was $98,542. Higher resistance zones extended to $102,757 and $108,757. These levels were within a broader supply block that rejected prices through September. The structure showed continued pressure as BTC remained inside the wedge during the decline period throughout November.
sauce: TradingView
The daily RSI recorded a value of 32.23, just above the oversold threshold. This indicates that bearish momentum is still prevailing but may have reached depletion. If the RSI continues to hover near or below this zone, it may indicate that sellers are losing strength and the likelihood of a short-term bailout rebound is increasing.
Sharpe ratio indicates high risk, high return stage
Bitcoin Sharpe Ratio has returned to structurally depressed levels near zero. This change is consistent with the situation seen in 2019, 2020, and 2022. CryptoQuant analyst MorenoDV said these periods often precede multi-month trend formation.
Investors were watching this phase closely because long-term risk adjustment is often better in these low-sharp situations. The calculations behind these periods reflect the potential future return improvement if volatility stabilizes. Still, the market needed clearer directional signals before a broader positioning could be formed.
Analysts noted that these aspects do not guarantee a bottom price. However, changes in risk-adjusted quality indicated a point for investors to evaluate structured entry strategies. As markets remain sensitive to short-term fluctuations, careful sizing of strategies remained essential.
Related: Bitcoin Cash rises around 12% on government bond trading and futures news
Surrender index surges to multi-year peak
Bitcoin has entered a severe stress zone as the capitulation indicator has soared to near 25T. This movement was the highest level since early 2020. Prices also plummeted from the 110,000 area to the 90,000 area, and the chart showed repeated capitulation spikes from 2024 to 2025.
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Analyst Rose said investor buying has reached its lowest point, according to Glassnode data. Rose said this pattern is consistent with what was seen during the coronavirus crash and the FTX collapse. The red surrender indicator hovered near zero before surging above 20T, confirming widespread loss-based selling.
Historical data shows that large red spikes often fall below the market bottom. Examples from July 2024, April 2025, and October 2025 corresponded to periods of deep fear. These areas had high-value buyers who entered the market when weak holders were forced out. With a current value of approximately $25 trillion, important questions have arisen that are prevalent in the market. “Can Bitcoin regain more than $89,000?”
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