Bitcoin’s recent price correction, which saw a 6% drop between November 13 and 15, has sparked discussions about whether it could face a deeper crash.
The decline occurred after Bitcoin surpassed its previous all-time high of $73,880, reaching new heights above $91,000. Despite this pullback, Bitcoin has maintained a higher high and higher low pattern, indicating continued bullish momentum as long as it stays above the $85,000 range on the daily chart.
Liquidity Sweep at $85,000
Bitcoin remains resilient despite its recent dip, maintaining a higher high and higher low pattern on hourly charts and staying above key moving averages (50-day, 100-day, and 200-day). This bullish momentum has held steady since November 5, signaling overall market strength.
Analyst Bluntz suggests the current pullback to $87,000 could be the final low before Bitcoin targets $100,000. A liquidity sweep near $85,500 might solidify support, paving the way for continued upward momentum.
Overleveraged Markets
Bitcoin faces a potential challenge if it fails to maintain a daily close above $85,000, as overleveraged positions in the futures market increase the risk of a deeper correction.
CryptoQuant CEO Ki-Young Ju noted on November 13 that the estimated futures leverage ratio for Bitcoin/USDT pairs has reached a record high of 270%, surpassing its previous peak from May 2024.
Compounding this risk, Bitcoin’s open interest levels have also reached all-time highs, signaling a significant volume of leveraged positions. Additionally, the lack of historical trading activity above $73,884—where Bitcoin has been trading for less than 10 days—creates thin spot order book support and resistance, further complicating price stability in this range.
CoinGlass data reveals a key liquidation zone around $85,750, where over $127 million in leveraged positions could be wiped out. This makes a liquidity sweep of the $85,000 level likely, potentially providing the foundation for a price rebound if buyers step in. However, the thin market conditions and high leverage remain critical concerns that could exacerbate volatility.
Bitcoin’s bullish momentum hinges on holding above $85,000, but overleveraged markets and thin support above $73,880 increase the risk of a deeper correction. The coming days will be critical in determining whether Bitcoin stabilizes or declines further.
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