#Bitcoin❗ $BTC

Bitcoin extended November’s decline early today, flushing under $88,000 and tagging new lows around $85,949.

The drop is NOT random — it’s a collision of macro liquidity pressure, DeFi contagion, and technical breakdowns.

But today marks something bigger:

The Federal Reserve officially ends Quantitative Tightening (QT).

This is a turning point in the liquidity cycle.

Below is your full macro + chart breakdown.

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📉 1. What Triggered BTC’s Drop?

• Yearn Finance Exploit → Contagion Risk

YFI’s collapse sent shockwaves through DeFi, sparking forced deleveraging across the market.

• Ethereum Down 27% in November

ETH weakness dragged the entire liquidity profile lower.

When ETH collapses → altcoins suffer → hedge flows move to BTC → volatility spikes.

• Panic Volume Spike ($26B+)

Elevated volume shows liquidation pressure, not accumulation.

• Whale Liquidity Sits BELOW $88K

Large buyers positioned at $86K–$84K, not above $90K.

Market followed the liquidity.

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💡 2. Macro Catalyst: QT Ends Today (Dec 1)

Ending QT means liquidity drainage stops.

Historically, this creates medium-term upside:

2019 QT Pause → BTC 350% rally

2020–2021 Liquidity Wave → Crypto Supercycle

2022 QT Restart → Crypto Bear Market

The shift doesn’t pump instantly — but it realigns the cycle.

This is why #BTCRebound90kNext? is trending on Square (20K+ watching).

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📊 3. Chart-Based Technical Breakdown

BTC Daily Structure

Price: $86K–$87K

24h Low: $85,949

Trend: Short-term bearish

Volume: Elevated → volatility expansion

Support Zones

Price Importance

$85K Major structural floor

$82K–$83K High-liquidity demand zone

$78K Extreme sweep target (only if macro shock hits)

Resistance Zones

Price Importance

$90K Cycle pivot level

$93K Trendline retest

$96K Pre-breakdown cluster

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📈 4. Indicators (Quick Read)

RSI

Near 34

Previous reversals at 28–32 → not yet oversold

MACD

Bearish, but contraction showing early bottoming

behaviour

Volume Profile (VPVR)

Thin zone $86K–$84K explains fast drop

Thick node at $90K–$92K = bounce target if recovery begins

BTC Dominance

Falling post-crash = early alt speculation (usually a fake-out)

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🔍 5. What Historically Happens After QT Ends

Crypto typically follows this pattern:

1. Volatility spike

2. Bottoming structure forms

3. BTC stabilizes

4. ETH recovers

5. Large-cap alts lead rotation

6. Broader alt rally over following weeks

We are between Phase 1 and 2 right now.

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🎯 6. Actionable Strategy (Realistic + Safe)

• If Holding BTC → Micro-DCA Only

Stick to your controlled approach. No emotional adds.

• If Trading → Bitcoin Must Reclaim $90K

A daily close above $90K flips structure bullish.

• If Watching Alts

Wait for:

BTC stability

ETH strength

QT liquidity drift

SOL, ETH, BNB, AVAX are the early rotation candidates.

• Zero Leverage Until $90K Break

Current volatility kills leveraged traders.

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⚠️ 7. Critical Weaknesses to Stay Aware Of

I expose every blind spot:

QT end takes 2–8 weeks to meaningfully lift markets

ETH’s 27% crash is cycle-negative

Altcoin rotation after a crash is usually a trap

YFI fallout may not be finished

$85K is fragile — one macro headline can break it

Whales still have bids at $84K–$82K → possible deeper sweep

Stay objective.

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🧭 Bottom Line

BTC is in a high-volatility zone, but today marks a major macro shift.

If $85K holds and liquidity begins drifting in post-QT, a recovery toward $90K+ becomes probability-aligned.

The next 2–6 weeks will reveal whether this is a cycle bottom or one more liquidity sweep.

Stay disciplined. Save cash. Let the market show its hand.

$ETH #BTCRebound90kNext?