Bitcoin News

Story: Bitcoin Faces Potential Final Leverage Flush Below $80K, Analyst Warns

By MikeT

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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…

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Market Conditions Show Signs of Local Bottom Formation. Despite the downward pressure, some analysts believe the worst may be behind Bitcoin for now.

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Whale Distribution Continues Despite Rebound Signs. Additional on-chain insights from CryptoQuant also point to a possible local bottom.

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Volatility Persists as Market Watches Key Levels. Bitcoin’s sharp decline has rattled the broader crypto market, which has been battling volatility…

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Conclusion. Bitcoin may have reached a temporary bottom after a dramatic liquidation-driven sell-off, but…

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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.

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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…

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However, he warned that the flush may not be fully complete.

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“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.

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He believes Bitcoin could briefly dip into the $70,000–$80,000 range if the market seeks to eliminate remaining pockets of leverage.

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A 2-sigma event suggests that the move was highly unusual, sitting two standard deviations outside normal volatility patterns.

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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…

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“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.

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Fan expects Bitcoin to trade within a range between $82,000 and $92,000, adding that the next major support lies near $78,000.

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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.

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