Bitcoin Leverage Remains High – Data Reveals Selling Pressure Above $93K
After a historic rally, Bitcoin faced its first major setback, falling 7% from its all-time high of $99,800. This comes after shares surged from $67,500 on November 5, rising nearly 50% in just a few weeks. The price action is essentially “only going up,” attracting a lot of attention from traders and investors.
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However, the current pullback highlights growing caution in the market. Market caution indicates that leverage levels remain elevated despite recent deleveraging measures. Adler’s analysis shows that an increase in short positions and consolidation below the psychological $100,000 mark led to the pullback.
Bitcoin’s performance remains strong despite broader backdropthis decline signals a potential shift in market sentiment. The question is whether BTC can muster enough momentum to break the $100,000 mark, or if further consolidation is on the horizon.
Many investors view this pullback as a healthy pause in the bullish cycle, but high leverage levels suggest volatility is continuing. All eyes are on Bitcoin as it moves through this critical phase, with the coming days likely to determine its short-term direction.
Bitcoin bear market emerges
After three weeks of minimal resistance from bears, signs of bearish resurgence emerged as Bitcoin struggled to break above the $100,000 level. Many thought this key price point would serve as a springboard for further gains, but it actually highlights growing bearish sentiment. CryptoQuant analyst Axel Adler saidrecent price action signals a potential shift in momentum.
Adler’s analysis of X shows that despite a recent wave of deleveraging, market leverage levels remain high. Many key long positions were established near the $93,000 mark, providing bears with the opportunity to profit if BTC fails to push higher. This level has now become a battleground, with Bitcoin unable to sustain upward momentum, signaling possible further downside risks.
Bitcoin price hovers around this key level, raising the possibility of a pullback to $88,500 or a prolonged sideways consolidation below $100,000. This situation will impact Bitcoin and set the tone for altcoin performance in the coming weeks.
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The next two weeks will be critical as market participants closely monitor Bitcoin’s price action. Decisive moves, whether up or down, will shape the broader cryptocurrency landscape and determine whether this is just a pause in a larger rally or the start of a deeper correction.
BTC tests new demand
Bitcoin is currently trading at $93,500, with bears regaining control after hitting a new all-time high on Friday. This pullback marks a shift in momentum, but bulls can still regain the dominance if the price remains strong above the key support at $92,000. Holding this level will keep Bitcoin’s price action structurally bullish and signal resilience in the face of increased selling pressure.
If Bitcoin maintains strength above $92,000, the short-term outlook remains positive, with another attempt at breaking through key resistance levels possible. However, a break below this level would signal short-term weakness and could trigger further declines. The next key level to watch will be around $84,000, with the 4-hour 200 EMA acting as a support area.
This level represents the primary bottom line for bulls. A break below this level could accelerate bearish momentum, prolong the correction and dampen market sentiment. On the other hand, holding above $92,000 will bolster bullish confidence, setting the stage for a recovery and possible move back to previous highs.
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Traders and investors are watching these levels closely as Bitcoin’s ability to stay above $92,000 will determine whether it maintains a short-term bullish structure or succumbs to bearish pressure.
Featured image from Dall-E, chart from TradingView
