Bitcoin’s recent price correction, down 6% from November 13 to 15, has sparked discussions about whether the coin could face a deeper crash.
The drop came after Bitcoin surpassed its previous all-time high of $73,880, reaching a new high above $91,000. Despite this pullback, Bitcoin maintained a higher highs and higher lows pattern, suggesting continued bullish momentum as long as it remains above the $85,000 range on the daily chart.
Liquidity sweeps at $85,000
Bitcoin remains resilient despite the recent price decline, maintaining a higher highs and higher lows pattern on the hourly chart and holding above key moving averages (50-day, 100-day, and 200-day). This bullish momentum has been steady since November 5, signaling overall market strength.
Analyst Bluntz suggests that the current pullback to $87,000 could be the final low before Bitcoin reaches its target of $100,000. A liquidity burst near $85,500 could consolidate support, paving the way for continued upside.
Over-leveraged market
Bitcoin faces a potential challenge if it fails to sustain a daily close above $85,000, as overleveraged positions in the futures market increase the risk of a deeper correction.
On November 13, CryptoQuant CEO Ki-Young Ju noted that the estimated futures leverage ratio for the Bitcoin/USDT pair has hit a record high of 270%, surpassing the previous peak in May 2024.
Exacerbating this risk, Bitcoin’s open interest has also hit an all-time high, signaling a large volume of leveraged positions. Additionally, the lack of historical trading activity above $73,884—where Bitcoin has traded for less than 10 days—creates thin order book support and resistance, complicating price stability within this range.
CoinGlass data shows a key liquidation zone around $85,750, where over $127 million in leveraged positions could be wiped out. This leaves liquidity likely to sweep past $85,000, potentially laying the groundwork for a price recovery if buyers step in. However, thin market conditions and high leverage remain key concerns that could exacerbate volatility.
Bitcoin's upside momentum hinges on holding above $85,000, but overleveraged markets and weak support above $73,880 increase the risk of a deeper correction. The coming days will be crucial in determining whether Bitcoin stabilizes or continues to decline.
