Bitcoin News Today: Bitcoin Approaches $80,500—Past Trends Indicate Possible Bullish Recovery

Bitcoin recently dropped to $86,300, its lowest point in seven months, sparking widespread bearish sentiment. Despite this, many analysts are increasingly optimistic about a short-term recovery, as both technical and behavioral signals echo previous market cycles. The cryptocurrency’s 5% decline within a single day resulted in over $914 million in liquidations, leaving traders anxious. Yet, a combination of technical support, negative retail sentiment, and macroeconomic similarities to earlier rebounds points to the $80,500 level as a potential turning point this summer

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Since early 2023, Bitcoin’s price has moved within a symmetrical upward channel, and the latest decline has brought it to the lower edge of this long-term range. Traders are watching closely to see if the $87,300 mark—where it stood at the time of writing—can act as support, as a drop below could lead to a test of $80,500. Santiment’s research points out that retail investor sentiment often moves opposite to price, with intense fear among smaller traders frequently preceding price recoveries. The CoinMarketCap Fear and Greed Index, now at a yearly low of 15/100, reflects conditions similar to late 2018, which was followed by a 30% surge within three months .

The market briefly showed strength on November 19, when

jumped 3.64% to $92,621, regaining the $93,500 level after a sharp fall to $89,368. Although this bounce was moderate, it has brought attention to resistance levels at $94,000 and $95,000. Analysts from CoinSwitch Market desk observed that, for the first time in weeks, the broader crypto market outperformed traditional assets, with , , and all recording double-digit percentage increases over 24 hours .

Broader economic trends are also starting to favor Bitcoin. The 2019 U.S. government shutdown serves as a historical example: after reopening, liquidity injections and expected Federal Reserve easing have historically coincided with crypto rallies. With ongoing uncertainty around Fed policy and continued volatility in equity markets, some traders are preparing for a similar scenario this time

. Meanwhile, Deribit’s data indicates a rising chance of Bitcoin reaching $90,000, $85,000, or $80,500, showing a mix of both bearish and bullish bets .

Although the outlook remains uncertain, the combination of technical, behavioral, and macroeconomic factors is creating a sense of cautious optimism. If Bitcoin can maintain a move above $94,000, it could revive longer-term bullish sentiment, but risks remain if major holders keep selling or if U.S. interest rate decisions disappoint. For now, the market is focused on whether the $80,500 summer half-life level—a key technical and psychological marker in the past—can spark a lasting recovery.