Bitcoin is at a crossroads after a sharp decline on Nov. 25 wiped out over $500 million in leveraged long positions. With prices briefly bottoming at $92,600 on Bitstamp, traders are closely watching whether the $92.5K zone can hold as support.
Sharp Drop Raises Risk of Further Losses
Bitcoin fell $5,000 during a single daily candle, leaving many wondering if the worst is over. A modest recovery followed, but analysts remain cautious. Keith Alan, co-founder of Material Indicators, noted that current price levels lack signs of strong support.
“Nothing about this chart resembles a validated support test,” Alan commented, suggesting the bounce could be a trap for longs.
Trader Skew also highlighted $92.5K–$92K as a crucial area. Losing this zone, he warned, could trigger another wave of sell-offs.
Leverage and Liquidations Add Pressure
Data from CoinGlass revealed that over $525 million in crypto positions were liquidated within 24 hours. The drop swept many leveraged long positions, leaving limited buy-side pressure in the market.
Sina, co-founder of 21st Capital, pointed out that this deleveraging could set the stage for another rally if Bitcoin reclaims $97K. He noted, however, that funding rates would need to remain balanced for such a move to materialize.
High Leverage Still a Concern
Despite the wave of liquidations, overall leverage in the market remains high. According to CryptoQuant data, many long positions were built near $93K, giving bears an opportunity to capitalize before Bitcoin reclaims these levels.
“Key long positions were built around $93K,” CryptoQuant contributor Axel Adler Jr. explained. “This gives bears a chance to profit before the price recovers.”
Will Bulls Defend $92.5K?
For Bitcoin to avoid a deeper correction, bulls must hold the $92.5K support zone. If this level fails, analysts warn that the market could face another significant downturn. However, a bounce here could lead to a renewed push toward $100K if market conditions align.
