Bitcoin Leverage Ratio Plunges, Here’s What This Means

On-chain data shows the Bitcoin estimated leverage ratio has taken a plunge recently; here’s what this could mean for the market. Bitcoin’s Estimated Leverage Ratio Has Sharply Declined Recently As an analyst in a CryptoQuant post pointed out, the leverage has dropped in the market despite the rally. The relevant indicator here is the “estimated [...]

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Bitcoin Leverage Remains High Data Reveals Selling Pressure Above $93K

After a historic rally, Bitcoin has faced its first major setback, pulling back 7% from its all-time high of $99,800. This comes after an impressive surge from $67,500 on November 5, marking a nearly 50% climb in just a few weeks. The price action has largely been “only up,” attracting significant attention from traders and investors alike. Related Reading: Ethereum Analyst Predicts $3,700 Once ETH Breaks Through Resistance However, the current pullback highlights growing caution in the market. Market caution said leverage levels remain elevated despite recent deleveraging efforts. Adler’s analysis reveals that increasing short positions and consolidation below the psychological $100,000 mark have contributed to the retracement. While Bitcoin’s performance remains strong in the broader context, this dip signals a potential shift in market sentiment. The question is whether BTC can gather enough momentum to break past the $100,000 barrier or if further consolidation is on the horizon. Many investors consider this pullback a healthy pause in a bullish cycle, but the high leverage levels suggest continued volatility. All eyes are on Bitcoin as it navigates this critical phase, with the next few days likely to determine its short-term direction. Bitcoin Bears Showing Up After three weeks of minimal resistance from bears, signs of their resurgence emerge as Bitcoin struggles to break past the $100,000 level. This critical price point, which many believed would act as a springboard for further gains, has instead highlighted growing bearish sentiment. According to CryptoQuant analyst Axel Adler, the recent price action marks a potential shift in momentum. Adlers analysis on X reveals that despite a wave of recent deleveraging, leverage levels in the market remain elevated. Many key long positions were established around the $93,000 mark, providing bears with an opportunity to profit as BTC failed to push higher. This level has now become a battleground, with Bitcoin’s inability to sustain upward momentum signaling the possibility of further downside risk. Bitcoins price hovers around this key level, raising the likelihood of a correction toward $88,500 or prolonged sideways consolidation below $100,000. Such a scenario would impact Bitcoin and set the tone for altcoin performance in the coming weeks. Related Reading: XRP Analyst Sets $2 Target If It Holds Key Level Can It Reach Multi-Year Highs? The next two weeks will be pivotal as market participants closely watch Bitcoins price action. A decisive move, whether up or down, will shape the broader cryptocurrency landscape and determine whether this is merely a pause in a larger rally or the start of a deeper correction. BTC Testing Fresh Demand Bitcoin is trading at $93,500 as bears regained control after it hit an all-time high last Friday. This retracement marks a shift in momentum, but bulls still can reclaim dominance if the price remains strong above the critical $92,000 support level. Holding this level would keep Bitcoin’s price action structurally bullish and signal resilience in the face of increased selling pressure. If Bitcoin sustains strength above $92,000, the outlook for the short term remains optimistic, with the potential for another attempt at breaking key resistance levels. However, a drop below this mark would signal short-term weakness, potentially triggering further declines. The next critical level to watch would be around $84,000, where the 4-hour 200 EMA aligns as a support zone. This level represents a major line in the sand for bulls. A breakdown below it could accelerate bearish momentum, extending the correction and dampening market sentiment. On the other hand, holding above $92,000 would reinforce bullish confidence, setting the stage for a recovery and a potential pushback toward previous highs. Related Reading: Avalanche Soars 20% In 24 Hours Analyst Reveals Next Price Target Traders and investors are closely watching these levels, as Bitcoins ability to stay above $92,000 will determine whether it remains in a short-term bullish structure or succumbs to bearish pressures. Featured image from Dall-E, chart from TradingView

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Bitcoin Faces Major Deleveraging Analyst Explains Price Crash Below $100K

Bitcoin experienced significant selling pressure after successfully breaking above the $100K mark, a psychological milestone that had investors buzzing with optimism. However, the celebration was short-lived as BTC failed to hold this critical level, dropping as low as $92,500 in less than three days. This sharp downturn has reignited concerns about the market’s stability and Bitcoin’s ability to sustain its upward momentum. Related Reading: Ethereum Downswing To $2,900 Could Be A Buy-The-Dip Opportunity Analyst Expects Bullish Surge Axel Adler, a prominent CryptoQuant analyst, shared valuable insights into the recent market activity. He revealed that the largest deleveraging in the past week took place between January 6 and 7, when Bitcoins price fell from $102K to $100K due to liquidations. This wave of forced selling pushed prices lower, allowing bears to regain control and drive Bitcoins price down further to $92,500. The current market conditions have left investors questioning Bitcoins next move. Will it stabilize and find support to mount another rally, or will the bearish momentum lead to a deeper correction? With the market sentiment teetering between fear and cautious optimism, all eyes remain on Bitcoin as it navigates this critical phase.  Bitcoin Regains Ground After Aggressive Sell-Off Despite experiencing an aggressive drop that saw Bitcoin plummet to $92K, the cryptocurrency has managed to find key support at this critical level. In the past few hours, BTC has pushed above this threshold, climbing to $95K, offering a glimmer of hope for bullish investors. The ability to hold and rebound from this support level suggests potential resilience, but uncertainties remain. Prominent CryptoQuant analyst Axel Adler shared insightful data on X about the recent market dynamics. He noted that the largest deleveraging in the last week occurred between January 6 and 7, when Bitcoin’s price dropped from $102K to $100K due to a wave of liquidations. This liquidation event wiped out overleveraged positions and set the stage for bearish activity. Capitalizing on the chaos, bears opened shorts, further driving the price down to $92K. Despite the recent recovery, Adler warns that the current 9K BTC reduction in open interest (OI) doesn’t provide a definitive signal of pressure easing in the market. This leaves Bitcoin’s next move uncertain, with investors closely watching how the price action unfolds in the coming days. Related Reading: Expert Sets $1 Target For Dogecoin Once It Breaks A Multi-Year Trend Details The recovery to $95K is a positive sign, but BTC must reclaim higher levels to confirm bullish momentum and stabilize the market. Until then, traders remain cautious as the potential for further volatility looms. BTC Holds Key Level: Bulls Eye Higher Ground Bitcoin is trading at $95,000, holding above a critical support level and sitting just 2% below its 4-hour 200 EMA at $96,200. The 200 MA, another significant indicator, lies 3% away, adding further importance to Bitcoins current position. These technical levels are pivotal for assessing short-term market momentum and potential bullish recovery. For bulls to reclaim the uptrend, the $95K level must hold as a foundation for further upward movement. A decisive push to reclaim the $98K and $100K levels is crucial. These price points serve as key resistance levels that, once surpassed, could set the stage for a robust leg up, paving the way for Bitcoin to revisit its all-time highs. Failing to hold above $95K could open the door to increased bearish pressure, potentially sending BTC into a deeper consolidation or even testing lower demand zones. However, holding the line at current levels and building momentum could restore investor confidence and create the conditions needed for a sustained rally. Related Reading: Solana Must Reclaim Momentum In The Coming Weeks SOL/BTC Ratio At A Pivotal Point As Bitcoin consolidates, traders and analysts alike are closely monitoring these critical levels to gauge the cryptocurrencys next move. A breakout above the $100K mark could reignite bullish sentiment and set a more defined direction for the market. Featured image from Dall-E, chart from TradingView

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