Emre Yumlu 
Bitcoin’s sharp downturn over the past days has triggered a substantial wave of leveraged liquidations, yet some market observers believe the process may not be over. A portion of traders using high leverage still remains active, creating the risk of another downward sweep that could pressure prices further.
A “2-Sigma Cleanup”: Leverage Continues to Unwind
Crypto analyst James Check characterized the latest sell-off as a “two-standard-deviation long liquidation event,” suggesting that the market has aggressively purged overly leveraged positions. According to Check, such events often act as a reset, clearing out speculative traders who take on excessive risk.
While the majority of leverage has already been flushed out, Check warns that the market has a remarkable ability to detect remaining pockets of risk. For that reason, he argues that a final downward move into the $70,000–$80,000 range would not be unexpected.
Bitcoin recently shed more than $24,000 within a ten-day period, touching an intraday low near $82,000 on Nov. 21 — its weakest level in seven months.
Signs of a Local Bottom Begin to Appear in Bitcoin
Despite the heightened volatility, some analysts believe the market may have reached a temporary equilibrium. Augustine Fan from SignalPlus noted that Bitcoin is deeply oversold from both sentiment and technical standpoints, citing indicators such as Bollinger Bands.
Fan expects Bitcoin to trade within a $82,000–$92,000 band in the near term. She mentions $78,000 as the next major support level, adding that a decisive break below it could open the door to a steeper decline. However, this scenario is not her primary expectation for now.
Bitcoin Whale Distribution Delays a Full Trend Reversal
On-chain analysts at CryptoQuant also point to signals of a potential local bottom forming, driven by market structure and redistribution patterns. Even so, a key metric remains concerning: major Bitcoin holders controlling 1,000 to 10,000 BTC continue to offload coins.
CryptoQuant analyst Carmelo Alemán stresses that while recent stabilization looks constructive, a sustained recovery requires a clear behavioral shift among these large investors. Until whales stop distributing, any upside move is likely to remain fragile.
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