Crypto Update: Market Anxiety Rises as BTC Hits Support Levels Amid Volatility Spike

Bitcoin Hovers Near $91K as Extreme Fear Grips Market and $1B in Liquidations Hit Traders

Bitcoin (BTC $84,390.27) traded near $91,400 on Tuesday as sentiment sank to “extreme fear,” volatility surged, and leveraged traders saw over $1 billion wiped out. Ether (ETH $2,745.25) hovered around $3,060, while most altcoins continued to slide.

The Fear & Greed Index fell to 15/100, a level last seen in April before Bitcoin defied expectations and surged from $76,000 to above $100,000 within a month. While extreme fear could signal a potential bounce, Bitcoin may first test the $87,500 support level to clear remaining leveraged positions.

Monday highlighted the risks of emotional trading: one leveraged trader lost $5.5 million after shorting near the bottom with 30x leverage. As Warren Buffett once said, “Buy when there is blood in the streets, even if it’s your own,” advice that may resonate with opportunistic traders today.

Derivatives and Volatility
Over the past 24 hours, more than $1 billion in crypto futures were liquidated, mostly long positions. BTC’s 30-day implied volatility, measured by Volmex BVIV, briefly hit 55% annualized—the highest since October 10. BTC futures open interest reached a six-week high of 730,550 BTC, with rising OI amid falling prices confirming a downtrend. ETH futures OI remains near 12.5 million, while perpetual funding rates are mildly positive for most tokens except TRX. Options flows show a bias toward puts, notably BTC $90,000 strike puts expiring Nov. 28 and ETH $4,000 call rollovers.

Altcoins and Market Trends
Privacy coins led losses, with Zcash (ZEC $516.84) down 14% and Dash (DASH $56.45) down 9%, exceeding declines in ETH and XRP. Some tokens bucked the trend: ASTER and HYPE, tied to decentralized derivatives platforms, rose 8.5% and 5%. The CoinDesk 10 index, excluding Bitcoin, fell 3.8% in 24 hours, adding to a 19.7% monthly decline.

Altcoins show a series of lower highs and lower lows, indicating ongoing downtrends. However, prior bull markets often endured 30% corrections, suggesting the crypto market has not yet entered “crypto winter.”