On Tuesday, the cryptocurrency market continued its pullback trend.
According to Bitpush data, Bitcoin continued to face pressure after reaching a high of $95,000 in the early session. Bulls attempted a rebound in the afternoon but encountered bearish resistance at $94,800, briefly dropping below $91,000. At the time of writing, Bitcoin was trading at $91,646, down 2% over 24 hours. The altcoin market performed even more weakly, with over 90% of tokens in the top 200 by market capitalization recording losses.
The current total market capitalization of cryptocurrencies is $3.14 trillion, with Bitcoin's dominance at 57.3%.
In the U.S. stock market, the S&P, Dow Jones, and Nasdaq indices all closed higher, rising by 0.57%, 0.28%, and 0.63%, respectively.
The reason for the decline may be the overheating of the leveraged market.
Part of Bitcoin's decline may be due to excessive leveraged trading in the market, which can lead to forced liquidations and further price drops when volatility occurs.
Data analysis platform IntoTheBlock expressed a similar view, believing that Bitcoin's pullback 'can be attributed to' rising funding rates, ultimately leading to a bearish market sentiment. However, as funding rates return to normal ranges, further leveraged liquidations should be limited.
Cryptocurrency futures market analyst Byzantine General pointed out that, in terms of trading volume, Bitcoin's current price movement is similar to some previous local tops. He stated, 'Bitcoin is likely to experience a period of sideways consolidation during this time. However, some other cryptocurrencies may perform well during this period.'
From a technical perspective, Bitcoin may test the liquidity area near the psychological barrier of around $90,000 again, and may even drop further to $85,000.
This is because Bitcoin rose very rapidly between November 6 and November 22, with no significant imbalance between buying and selling. Such rapid increases are usually followed by a subsequent pullback to balance supply and demand. Therefore, Bitcoin may retrace to previous support levels or lower to digest the earlier gains.
Additionally, as the relative strength index (RSI) has fallen below 50 for the first time since November 6, it is expected that sellers will dominate price movements in the coming week, which may lead to Bitcoin prices consolidating below $95,000 for a while.
Cryptocurrency research analyst CoinSeer believes that the important support for Bitcoin is in the $85,000-$88,000 range, and falling below this level could trigger large-scale cascading liquidations.
TradingView analyst TradingShot wrote: 'Yesterday's significant pullback in Bitcoin caught the market off guard. There are several fundamental reasons behind this: first, the excitement after the elections is gradually fading, and second, the pressure from the psychological barrier of $100,000. However, there is a more important technical reason that has been overlooked.'
Analysts pointed out: 'As shown, there is a Fibonacci channel present in the past three cycles (including the current one). This channel started with a strong rebound when the top formed in December 2013. The top of that cycle was right at the 0.236 Fibonacci level, which has blocked upward movements in the bull markets of June 24, 2019, and May 11, 2024.'
TradingShot indicates that the recent pullback is due to Bitcoin hitting the 'first real resistance of the bull market cycle'.
He explained: 'This is the Fibonacci trend line that blocked the rise recently (November 22). We can call it the 'first real resistance of the bull market cycle' because this is the first major resistance level encountered before the bull market cycle ultimately peaks. In the past two cycles, the peaks occurred at the 0.0 Fibonacci level, which is the top of the channel (marked in red on the chart). The red dot at the end of 2025 is not a prediction, just for comparison.'
TradingShot also noted: 'The duration of each past bull market cycle is about 150 weeks (1050 days), and if this pattern repeats, the peak may occur at the end of September or the beginning of October.'
He pointed out: 'Attempting to catch a high point and sell is much better than giving an exact price. Interestingly, although BTC technically faced resistance, the current uptrend began from the low on August 5, 2024, right on the 1-week MA50 (blue trend line). Technically, as long as this trend line remains valid, the periodic bull market wave should be able to stay intact.'
