Market depth has declined about 30% since the October liquidation event, leaving prices more sensitive to moderate selling and leveraged positions.

Trading activity showed around $111 billion in volume with Bitcoin trading in a range from about $89,368 to $93,669, as the market hovered near a weekly high of roughly $93,000 amid thinning liquidity and rising bearish sentiment.

Bitcoin slipped below the $90,000 level for the first time since April, signaling renewed downward pressure after a volatile period as traders eye a potential relief rally.

Some analysts frame the dip as a potential opportunity for savvy investors to position for a relief rally, while stressing careful monitoring of market dynamics and technical indicators.

Regulatory and macro factors remain in flux, with two Fed rate cuts already seen this year but a December cut uncertain due to ongoing inflation dynamics and data gaps from government disruption.

Longer-term sentiment remains positive, with a historical gain of over 500% in three years, though near-term forecasts vary, including targets around $142,000 monthly and roughly $96,000 by year-end.

Options data imply a non-negligible chance of a dip toward the mid-$80,000s, though some observers expect a bounce from current levels.

Even a short squeeze would face barriers between roughly $106,000 and $109,000, with a sustained move above $116,000 needed to challenge the prevailing downtrend.

Macro uncertainty, geopolitical volatility and concerns about overhyped AI stock valuations are weighing on both institutions and retail investors in crypto.

Analysts note that prior death crosses have marked local bottoms, yet warn this pattern does not guarantee a bottom amid ongoing bear conditions and uncertainty about the current signal.

Technicals show oversold conditions with RSI around 29 and MACD negative, suggesting a possible near-term rebound despite continued bearish momentum.

The current decline challenges earlier views of market maturation, signaling renewed concern about risk conditions in the crypto sector.