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Bitcoin’s recent volatility may not be over, with some market analysts cautioning that another sharp downside move could still occur. Despite signs of stabilization after last week’s steep sell-off, lingering leveraged positions may pull the price back into a deeper correction zone, potentially between $70,000 and $80,000.
Analyst Warns of Remaining Leverage in the Market
According to crypto analyst James Check, the sharp decline that sent Bitcoin down to a seven-month low was a “2-sigma long liquidation event,” a statistical term describing a major price swing that triggers widespread liquidations. Check noted that this market crash removed a significant portion of over-leveraged long traders — whom he referred to as “degen gamblers.”
However, he warned that the flush may not be fully complete.
“Most of the leverage is gone, but the market has an incredible nose that can sniff out the final hold-outs,” Check said, adding that another wick downward could still unfold.
He believes Bitcoin could briefly dip into the $70,000–$80,000 range if the market seeks to eliminate remaining pockets of leverage.
A 2-sigma event suggests that the move was highly unusual, sitting two standard deviations outside normal volatility patterns. Bitcoin fell more than $24,000 in ten days, reaching approximately $82,000 on Nov. 21, marking its lowest point since April.
Market Conditions Show Signs of Local Bottom Formation
Despite the downward pressure, some analysts believe the worst may be behind Bitcoin for now. Augustine Fan, head of insights at SignalPlus, told Cointelegraph that the market is showing indications of forming a local bottom following the intense sell-off.
Fan said the market is extremely oversold based on sentiment and technical indicators such as Bollinger Bands, which often signal potential reversal points when price action becomes stretched.
“Prices are likely to have seen local lows for now, absent any new exogenous factors,” Fan explained, referencing risks such as forced selling or sudden market shocks.
Fan expects Bitcoin to trade within a range between $82,000 and $92,000, adding that the next major support lies near $78,000.
She noted that a confirmed breakdown below this level could open the door to deeper losses — though she emphasized that this is not the base-case scenario at the moment.
Whale Distribution Continues Despite Rebound Signs
Additional on-chain insights from CryptoQuant also point to a possible local bottom. Analyst Carmelo Alemán said Bitcoin’s current structure reflects a combination of institutional distribution, weakened market conditions, and an early-stage rebound.
“On-chain data shows a market shaped by institutional redistribution, structural weakness, and a rebound that may signal a local bottom,” Alemán stated.
However, one key on-chain metric suggests caution: The 1,000–10,000 BTC whale cohort, one of the most influential investor groups in the market, continues to sell.
This ongoing distribution prevents analysts from confirming a full trend reversal, and it supports concerns that another final downside move may still unfold if selling continues.
Volatility Persists as Market Watches Key Levels
Bitcoin’s sharp decline has rattled the broader crypto market, which has been battling volatility amid macroeconomic uncertainty, shifting liquidity conditions, and leveraged positioning. Analysts widely agree that investor sentiment is still fragile, and price action remains highly sensitive to sudden changes in derivatives markets.
The key levels to watch in the coming days include:
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$92,000 — upper boundary of the expected range
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$82,000 — current stabilization zone
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$78,000 — major support
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$70,000–$80,000 — potential final leverage flush zone
A strong defense of the $78,000 zone could support a gradual recovery, while a breakdown may validate analysts’ warnings of a deeper wick to eliminate residual leverage.
Conclusion
Bitcoin may have reached a temporary bottom after a dramatic liquidation-driven sell-off, but analysts caution that the situation remains fluid. While technical and sentiment indicators point to stabilization, the continued distribution from large whale addresses and leftover leverage in the market pose risks of another sharp downward move.
As the market monitors critical support zones, traders should prepare for continued volatility. The next few days could determine whether Bitcoin resumes an upward path or faces one final, aggressive flush before finding a more stable footing.
