Bitcoin's Surprising $87K Breakthrough Emerges Amid Broader Market Selloff and Technical Uncertainty

What appeared to be another ordinary Sunday turned into a dramatic market moment when Bitcoin suddenly stuck past $80,000 resistance and surged toward $87,000. The move caught many traders off guard, coming after weeks of relentless selling pressure that had wiped roughly $1 trillion from the crypto sector in just nine days. The asset had touched its lowest point since April, putting the current month in contention for its worst performance since 2022.

The Weight of Recent Losses

The context behind the sudden bounce tells a critical story. Bitcoin remains down over 33% from its early-October peak near $126,000, territory that technically qualifies as a bear market. Even accounting for today’s recovery, the year-to-date loss sits around 10%, with multiple analysts warning that another wave of selling could force the first yearly loss since 2022. This backdrop explains why the market reacted with such skepticism to the upward move—participants had grown accustomed to red candles dominating the calendar.

Examining the Selloff Mechanics

According to Hyunsu Jung at Hyperion DeFi, the current correction doesn’t represent a fundamental shift in trend direction. Jung noted that “it seems early in the selloff process,” emphasizing that multiple forces are compressing risk assets simultaneously. Beyond cryptocurrency, traditional equities face headwinds from potential exhaustion in the artificial intelligence trade narrative, combined with global rate uncertainty.

Institutional flows add another layer of complexity. Corporate treasuries and major investors—particularly those managing large portfolios—have reportedly shifted capital away from digital assets toward equities. BlackRock shareholders represent a significant portion of this outflow dynamic, according to Jung’s analysis.

Technical Signals Point to Deeper Issues

The current weakness has roots stretching back to October. When Bitcoin climbed earlier that month, the RSI (Relative Strength Index) failed to confirm the move—a bearish divergence signaling downside vulnerability ahead. This technical warning proved prescient when the $106,000 support level collapsed, triggering substantial selling volume.

Jung emphasized that the pressure originated predominantly from long-term investors, not short-term traders making tactical moves. Down days have consistently registered among the heaviest trading volumes of the second half of 2025, with a 4.4% single-day decline ranking among the most active trading periods this year.

Federal Reserve Data as the Next Catalyst

Oleg Kalmanovich at Neomarkets KZ highlighted that Bitcoin cannot sustainably recover toward early-October highs without assistance from macroeconomic data. Specifically, traders are positioned to react sharply to the October retail sales figures scheduled for November 25, followed by personal consumption data on November 26.

“If the figures fall below expectations, the Fed could cut rates on December 10,” Kalmanovich explained, “giving the market a chance to reverse and rebound.” Conversely, disappointing economic data would likely extend the crypto pressure into early 2026, with meaningful recovery potentially delayed until spring.

Critical Price Levels Define Near-Term Direction

Vasily Girya, managing GIS Mining, identified $80,600 as the level where demand previously materialized, contributing to the smaller recovery that preceded today’s surge. However, Girya cautioned that characterizing this movement as “the beginning of a sustainable trend reversal” would be premature.

The $87,000 threshold emerges as crucial for the coming hours. If Bitcoin settles below this level when U.S. equity markets open Monday, it could signal the onset of prolonged stagnation—what many in the industry describe as crypto winter conditions. To avoid this scenario, Girya suggested Bitcoin needs to consolidate above $93,000 by Monday to restore trader confidence.

“Right now traders are adopting a wait-and-see approach,” Girya noted. “A fast recovery would help avoid extended stagnation, but from a technical perspective, $93,000 represents the level that could trigger meaningful upside momentum.”

Portfolio Pressures Intensify

Kalmanovich added that wealthier traders face mounting pressure to reallocate holdings toward dollars, creating an additional headwind for Bitcoin as the market enters a critical week. This rotation from risk assets to cash equivalents remains a structural challenge independent of short-term price action.

The Adam Back narrative, which recently resurfaced on Polymarket with the humorous reminder that the Blockstream founder maintains a buy order for 21 million Bitcoin at $0.01, underscores the long-term conviction some participants maintain despite near-term turbulence. Back previously projected Bitcoin could reach between $500,000 and $1 million during this cycle—a price target that seems distant given current conditions.

The coming days will prove pivotal in determining whether today’s rally represents the beginning of recovery or merely a temporary correction within an extended downtrend.