Bitcoin Price Bounces After Sharp Drop, Finds Support and Looks to Regain Momentum

In November, Bitcoin (BTC/USD) finally found strong support near the 0.786 Fibonacci Retracement level, around $85,000, after a rough 45-day decline. The price dropped from its all-time high of about $126,198 on October 6 to a low of approximately $80,391 by November 21. Since then, Bitcoin has bounced back to trade near $95,236.

The last quarter of 2025 was tough for the crypto market. Much of the growth seen in earlier months was lost due to a slowdown in digital asset treasuries (DATs) and reduced interest from large institutional investors.

Earlier in 2025, Bitcoin had one of its best rallies in years. It climbed from around $75,000 in April to reach new record highs above $126,000 by October. This rally was mostly driven by increased adoption among institutions and companies adding DATs to their balance sheets as a way to diversify assets.

Technically speaking, Bitcoin is now pushing back toward its 100-day moving average. This line often acts as a key resistance level. If Bitcoin manages to break above it, that could signal a shift from bearish to bullish sentiment in the market. That would open the door for another run at the $100,000 mark.

The Relative Strength Index (RSI), a key momentum indicator, is also turning positive. The 14-day smoothed RSI is nearing overbought territory, which usually suggests growing buying pressure.

If Bitcoin fails to break above the 100-day moving average and pulls back again, the $85,000 area—near the 0.786 Fibonacci level—should provide solid support. This zone could be a good opportunity for investors looking to buy back in.

Even though Bitcoin has dropped over 23% since October 6, it’s still doing better than most altcoins. For example:

– Solana (SOL) is down 36%
– Ethereum (ETH) is down 29%
– Ripple (XRP) is down 31%
– Cardano (ADA) has lost over 50%

Compared to their own all-time highs, Bitcoin remains the strongest performer among top cryptocurrencies.

One major reason for Bitcoin’s long-term strength is continued institutional interest. Over the past two years, institutional buying picked up sharply—first with the launch of Spot Bitcoin ETFs in early 2024 and then again with more companies investing in DATs between April and November 2025.

However, in the past couple of months, this buying activity has slowed down. Global economic uncertainty and the growing interest in artificial intelligence (AI) have pulled some money away from crypto investments.

Macroeconomic events are also having a bigger impact on Bitcoin’s price. The big drop on October 6 happened around the same time as political tensions involving Trump’s tariff threats against China. Meanwhile, Bitcoin’s rebound to $95,000 came just as U.S. airstrikes hit Venezuela and its President was captured during an oil-related conflict.

Right now, as many tech investors focus on AI projects, there may be less capital flowing into crypto in the short term. This could lead to more price swings being driven by technical factors rather than news or big investments.

Looking ahead into 2026, Bitcoin could face a bumpy ride with uneven price movements. Instead of steady growth, we might see quiet periods followed by sudden bursts of activity.

This is where trading algorithms become valuable. Smart algorithms can help investors spot both buying and selling opportunities and better predict when those moves might happen.

Despite short-term challenges and volatility, Bitcoin’s long-term trend still looks positive. The path forward may have ups and downs, but the overall direction appears to be upward.