Bitcoin hovered close to the crucial $90,000 level on Friday as traders shifted their focus toward renewed downside targets. The rejection at the 2025 yearly open continued to weigh on market sentiment and encouraged calls for a potential slide back to the low $80,000 region.

Bitcoin Slips Toward $90,000

Data from TradingView showed Bitcoin trading almost two percent lower than Thursday’s close. The leading cryptocurrency failed to reclaim momentum after its recent rejection and traders prepared for deeper support tests. Many market participants noted that the broader structure suggested weakening demand in the short term.

Traders Highlight Thin Buy-Side Liquidity

Market watchers pointed to liquidity clusters that suggest further volatility ahead. Trading account Exitpump stated that order book heatmaps revealed a thin bid environment, with more substantial buy walls only appearing near $86,000 and lower. The trader added that filling market gaps and resetting open interest would be a constructive move for Bitcoin’s long term trend.

BTC/USDT perpetual contract three-day chart. Source: Daan Crypto Trades/X

Crypto investor Ted Pillows echoed this view using liquidity data from CoinGlass. He identified two key clusters: upside liquidity near $94,500 and downside liquidity around $90,000. He suggested that a sweep of the lower liquidity band before any recovery would be a logical development. He described the current setup as one of those clean the lows then decide moments that often guide market reversals.

Trader Daan Crypto Trades emphasised the importance of maintaining the higher timeframe region around $88,000 to avoid stronger bearish momentum. He noted that Bitcoin ideally should not lose this zone again.

Ichimoku Cloud Signals a Potential Drop

Technical analyst Titan of Crypto relied on Ichimoku Cloud indicators to outline possible future lows. His analysis pointed back toward the mid to low $80,000 range as a potential support area. He highlighted that Bitcoin had taken the previous weekly high but failed to close above the Kijun line, weakening bullish conviction.

BTC/USDT one-day chart with Ichimoku Cloud data. Source: Titan of Crypto/X

He added that a pullback to the Tenkan line appeared likely in the coming sessions. If this level fails to hold, the next notable support sits close to $83,900 which matches the local lows seen earlier in the week.

Market Awaits Signs of Strength

Despite the short term weakness, several analysts noted that a controlled drawdown could be healthy for Bitcoin’s broader trend. Sweeping liquidity, refilling bids and resetting overheated positions may create a stronger foundation for a future advance. Traders now watch the $88,000 to $90,000 zone closely as Bitcoin attempts to stabilise. Any decisive loss of these levels could open the path toward the low $80,000 band which multiple technical indicators now highlight.

The Bitcoin mining sector is confronting what analysts describe as its most punishing economic phase since the industry began. Mining revenues have dropped to structural lows, operational costs continue to climb and payback periods for new hardware now stretch beyond one thousand days. TheMinerMag’s latest assessment paints a stark picture, showing that even the industry’s largest players are struggling to stay profitable.

Hashprice Declines to Structural Lows

Hashprice, a key metric measuring miner earnings per unit of computing power, has fallen dramatically. It averaged nearly fifty five dollars per petahash per second during the third quarter, yet now sits around thirty five dollars per petahash per second. TheMinerMag describes this as a structural low rather than a temporary fluctuation.

Bitcoin mining costs across major publicly traded miners. Source: TheMinerMag

This drop has been driven in part by a sharp fall in Bitcoin’s market value. The cryptocurrency slid from a record high close to one hundred twenty six thousand dollars in October to under eighty thousand dollars in November. Lower prices reduce mining rewards, leaving operators with thinning margins even before rising costs are factored in.

Rising Costs Expose Efficiency Gaps

As revenues shrink, the cost per hash has become an essential indicator of competitiveness. It measures how effectively miners convert electricity and capital into computational power. The metric now reveals a widening divide between only the most efficient operators and the wider industry struggling to adapt.

The report notes that new generation mining machines need more than one thousand days to break even at current conditions. This is a major concern since the next Bitcoin halving event is about eight hundred fifty days away, an event that will further reduce mining rewards.

Debt Reduction Becomes the New Priority

With margins tightening, mining companies are reassessing their balance sheets. TheMinerMag highlights CleanSpark’s recent repayment of its Bitcoin backed credit line with Coinbase as an example of a broader shift in strategy. Firms are de risking, cutting debt and focusing on liquidity preservation rather than aggressive expansion.

Mining Stocks Suffer Steep Declines

The downturn in Bitcoin’s price has coincided with wider market weakness, hitting mining equities hard. TheMinerMag’s third quarter report points to a significant sell off beginning in mid October.

MARA stock’s year-to-date performance. Source: Yahoo Finance

MARA Holdings has dropped by around fifty percent from its mid October peak. CleanSpark shares have fallen by thirty seven percent. Riot Platforms is down thirty two percent. HIVE Digital Technologies has suffered the most severe decline, losing fifty four percent of its value since October.

Industry Faces a Challenging Road Ahead

With revenues falling, costs rising and the next halving approaching, the mining industry is navigating a period of intense pressure. Only operators with the most efficient hardware and strongest financial structures appear positioned to endure the current environment. Analysts warn that without a rebound in Bitcoin prices or significant efficiency gains, more miners could face consolidation or closure in the months ahead.

Bitcoin appears to have established a strong support level around $80,000, according to former BitMEX CEO Arthur Hayes. The cryptocurrency slipped more than 35 percent from its all-time high when it touched $80,500 last week. Hayes believes the decline has run its course and expects a recovery fuelled by improving liquidity in the United States.

Hayes Predicts $80,000 Will Hold

Sharing his outlook on X, Hayes argued that the recent dip marked the latest floor for Bitcoin. He told followers that he expects price action to remain choppy under $90,000 with the possibility of one more brief drop into the low $80,000 range. He expressed confidence that the $80,000 level will remain intact.

BTC/USD drawdowns from all-time highs. Source: Glassnode

His optimism is driven by what he describes as gradual improvements in dollar liquidity. He pointed out that bank lending rose in November and that the overall financial environment is shifting in favour of risk assets such as cryptocurrencies.

End of Quantitative Tightening Seen as Key Catalyst

A major factor behind Hayes’s bullish stance is the approaching conclusion of the Federal Reserve’s quantitative tightening programme. The central bank is expected to halt the reduction of its balance sheet next month. He believes this marks the beginning of a more supportive liquidity backdrop for both Bitcoin and alternative digital assets.

According to Hayes, a reversal toward more accommodative measures such as quantitative easing would significantly improve market momentum. He previously noted that Bitcoin often responds positively when global liquidity expands.

Stocks May Need to Fall Before Full Crypto Rebound

Hayes has maintained a consistently positive view on Bitcoin even as the market pulled back from record highs in October. He suggested that equities must undergo a sharp correction similar to the recent decline in crypto before a broader recovery can begin. He described this shift as necessary to set the stage for renewed money creation and a sustained rise in digital asset prices.

He mentioned that technology shares, specifically those linked to artificial intelligence, may need to retreat to encourage the liquidity environment required for a strong crypto uptrend.

Rate Cut Expectations Swing Sharply

The wider financial backdrop remains uncertain. Market expectations for the next Federal Reserve interest-rate move have been highly volatile. Predictions for a 0.25 percent rate cut at the December meeting jumped to nearly 79 percent on Monday. This figure stood at about 42 percent only a week earlier, reflecting the unusual instability in forecasts.

Fed target rate probability comparison (screenshot). Source: CME Group

The fluctuations follow limited macroeconomic data during the recent US government shutdown. Economist Mohamed El-Erian highlighted the sharp movement in expectations, calling it “stunning”. He argued that this level of volatility runs counter to the Federal Reserve’s usual goal of stability. He attributed the situation to a mix of disrupted data, intensified policy pressures, a Chair nearing the end of tenure and the absence of a clear long-term strategic framework.

Bitcoin’s price has edged back above the $110,000 mark, but analysts caution that the broader market remains fragile as trading volumes and investor confidence weaken.

Modest Recovery Amid Fragile Market Structure

Bitcoin rose 2.4% in the past 24 hours to trade around $110,000, bouncing off Monday’s low of $107,300. Despite the rebound, on-chain data from Glassnode suggested that demand in both spot and futures markets was weakening, pointing to a defensive stance among traders.

BTC/USD daily chart.

According to Glassnode’s Weekly Market Pulse report, spot trading volume fell by 9% to $7.7 billion from $8.5 billion. The firm said the decline reflected “waning investor participation” and “weaker conviction” as traders remained cautious following recent volatility.

Futures Traders Reduce Exposure

The futures market showed similar restraint. Open interest dropped slightly to $45 billion from $45.8 billion, while futures funding rates declined to $2.8 billion from $3.8 billion. Analysts said this indicated reduced demand for leverage and an unwillingness to maintain costly long positions.
“Traders appear less willing to extend risk, underscoring a defensive stance after recent volatility,” Glassnode noted. Institutional demand has also faded, reaching its lowest point since early April.

Key Levels to Watch for Bitcoin Price

Bitcoin is currently facing resistance at $110,500, the upper boundary of a descending parallel channel. A daily close above this level could signal a breakout, with the next target between $110,000 and $117,000, an area reinforced by the 50-day and 100-day simple moving averages.
On the downside, support lies at $108,000 and Monday’s low of $107,300, followed by the lower boundary of the channel at $105,300. If these levels fail, Bitcoin could slip towards the psychological support of $100,000.

Analysts Call for Break Above $112K

Michael van de Poppe, founder of MN Capital, said a “clear break” above $112,000 would be needed to open the path to new all-time highs. “Otherwise, I’d be looking at $103Kish for a great opportunity,” he added.

Bitcoin liquidation map. Source: CoinGlass

Other analysts highlighted liquidity zones as key short-term drivers. Data showed clusters of liquidity between $110,000 and $111,000, and another significant band between $105,500 and $107,000. Such levels often act as magnets for price movement.

Liquidity Hunt Underway

Analyst AlphaBTC suggested Bitcoin is currently engaged in a “liquidity hunt.” In a post on X, they argued that the market could first test the shorts clustered between $110,000 and $111,000 before dropping back to sweep liquidity around recent lows.
For bulls, reclaiming the 20-day exponential moving average at $112,500 remains critical. Failure to do so would raise the risk of a deeper correction towards $105,000 and potentially $100,000.