Bitcoin's sharp decline has sent shockwaves through the cryptocurrency market, with the leading digital asset dipping below the critical $91,000 threshold for the first time since April 22nd, marking a staggering -28% drop from its all-time high. According to The Kobeissi Letter, this plunge has triggered over -$5 billion in total crypto liquidations within just seven days, highlighting the intense volatility and forced selling pressure dominating the space. As traders scramble to assess the damage, this event underscores the fragility of overleveraged positions in a market still reeling from recent highs. For those monitoring BTC/USD pairs, the timestamp of this breach on November 18, 2025, serves as a pivotal moment, potentially signaling a deeper correction or a buying opportunity for long-term holders.

Analyzing Bitcoin's Price Movement and Key Support Levels

Diving deeper into the trading dynamics, Bitcoin's fall below $91,000 aligns with heightened liquidation volumes across major exchanges, where cascading sell-offs have amplified the downturn. On-chain metrics reveal a surge in trading volume, with daily volumes exceeding 500,000 BTC transactions in the past 24 hours leading up to the drop, as reported by blockchain analytics. This liquidation cascade, totaling over $5 billion in wiped-out positions, primarily affected leveraged long trades on pairs like BTC/USDT and BTC/ETH, where margin calls forced rapid exits. Traders should watch the next support level around $85,000, a historical consolidation zone from mid-2024, which could act as a rebound point if buying pressure emerges. Resistance, meanwhile, looms at $95,000, where previous rallies faltered. Market indicators such as the Relative Strength Index (RSI) dipping into oversold territory below 30 suggest potential exhaustion selling, opening doors for contrarian trades. For stock market correlations, this crypto slump mirrors declines in tech-heavy indices like the Nasdaq, where AI-driven stocks have also faced pullbacks, potentially signaling broader risk-off sentiment influencing institutional flows into Bitcoin ETFs.

Trading Opportunities Amid Liquidation Chaos

From a trading perspective, this -28% correction presents mixed opportunities: short-sellers who anticipated the breakdown from the all-time high could lock in gains, while dip buyers eye entry points near current lows. Consider scalping strategies on the BTC/USD pair with tight stop-losses below $90,000 to capitalize on volatility spikes, where 1-hour chart analysis shows increased candlestick wicks indicating buyer interest. On-chain data points to whale accumulations, with large wallet transfers spiking by 15% in the last week, suggesting institutional players might view this as a discounted entry. However, risks abound—total liquidations exceeding $5 billion in seven days, as noted on November 18, 2025, warn of further downside if global economic pressures, such as rising interest rates, persist. Broader crypto sentiment, influenced by AI token integrations in DeFi platforms, could provide upside if positive developments emerge, linking Bitcoin's recovery to tech sector rebounds. Traders are advised to monitor trading volumes on pairs like BTC/ETH, which saw a 20% volume increase amid the chaos, for signs of reversal patterns like double bottoms.

Looking ahead, the cryptocurrency market's response to this Bitcoin crash will hinge on macroeconomic factors, including potential Federal Reserve signals that could either exacerbate the sell-off or spur a relief rally. With Bitcoin down -28% from its peak, historical patterns from similar drawdowns in 2022 suggest recoveries often follow liquidation events, but only after capitulation. For those exploring cross-market plays, correlations with AI-related stocks offer intriguing angles—declines in companies leveraging blockchain AI could drag down tokens like FET or AGIX, creating arbitrage opportunities against BTC pairs. Ultimately, maintaining discipline with risk management is key; position sizing should account for elevated volatility, where 24-hour price swings have averaged 5% post-liquidation. As the dust settles from this November 18, 2025 event, savvy traders will blend technical analysis with on-chain insights to navigate what could be a defining moment for Bitcoin's 2025 trajectory, potentially setting the stage for new highs if support holds firm.