The Bitcoin market has shown a temporary rebound after the recent plunge, but some major analysts warned that remaining leverage liquidations could lead to further declines.
On the 26th (local time), according to Cointelegraph, on-chain analyst James Check classified the recent plunge as a “2-sigma long leverage liquidation phase,” stating that although a significant portion of speculative leverage has been removed, the market strongly tends to hunt down the last remaining positions. He analyzed, “To remove the final remaining leverage, Bitcoin could briefly drop to the $70,000s or the low $80,000s.”
Bitcoin fell more than $24,000 in ten days this month, hitting about $82,000 on November 21, its lowest in seven months. Check described this plunge as a statistically large-scale leverage liquidation event.
Some in the market argue that a short-term bottom has been formed. Augustin Fan, head of research at SignalPlus, said, “Indicators and sentiment have both entered oversold territory, and absent exogenous variables, the current level could be a short-term bottom.” He said short-term prices are likely to fluctuate between $82,000 and $92,000, and identified the next major support at $78,000. However, he added that if this support breaks, further sharp declines could occur.
On-chain indicators show a complex flow in which rebound potential and structural weakness coexist. CryptoQuant analyst Carmelo Aleman assessed, “A short-term rebound has appeared amid institutional redistribution and structural weakness, and a short-term bottom seems possible.” However, he diagnosed that selling pressure from whales holding between 1,000 BTC and 10,000 BTC still persists, falling short of confirming a trend reversal.
He said, “The recovery momentum is positive, but to confirm the end of the downtrend, a clear sign that whale selling has stopped is needed.”
