Bitcoin has entered a bear market, dropping 28.8% from its October peak to trade near $90,015. The decline is attributed to cautious market sentiment amid the Federal Reserve's tightening monetary policy and risks associated with cryptocurrency exchanges. Fred Krueger highlights liquidity issues and forced selling due to exchange collapses as significant factors driving the downturn. Historical patterns show similar declines in previous years, including 2011, 2017-2018, and 2021-2022. As Bitcoin navigates this challenging period, support and resistance levels are becoming increasingly important for determining its near-term direction.