Bitcoin (BTC) edged off multiday lows on Nov. 26 after a brutal day liquidated over $500 million of crypto longs.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin risks new sell-off if $92,500 zone lost
Data from Cointelegraph Markets Pro and TradingView showed $92,600 forming a local BTC price bottom on Bitstamp.
BTC/USD had fallen $5,000 over the course of the Nov. 25 daily candle, and a modest bounce from the lows was not enough to convince market participants that the worst was over.
“Nothing about this chart resembles a validated support test for $BTC,” Keith Alan, co-founder of trading resource Material Indicators, commented in part of an X post about 4-hour timeframes.
“At least not without landing on anything that looks like s prior consolidation or R/S Flip level. I could be wrong, but this feels like a short term bounce to trap some longs.”
BTC/USD 4-hour chart. Source: Keith Alan/X
Popular trader Skew flagged the area immediately beneath the local lows as essential for bulls to hold.
“To me the $92.5K – $92K area on BTC is very important now,” he told X followers.
“Losing that I think the market as whole would sell off.”
BTC/USDT 4-hour chart. Source: Skew/X
A further post described $92,500 as the “pivotal price between higher & a deeper correction.”
“A nice similarity here though is the pullback so far is around the same % as the previous ATH to initial low pullback,” Skew noted, referring to Bitcoin’s first trip to $93,500 earlier in November.
BTC traders retain taste for leverage
Meanwhile, data from monitoring resource CoinGlass put total cross-crypto liquidations over the 24 hours to the time of writing at $525 million.
Related: Who cares about $100K? 5 Things to know in Bitcoin this week
“See how nicely the levered longs were swept. Nothing left to liquidate on the long side,” Sina, co-founder of asset management firm 21st Capital, reacted on X.
“Now imagine what can happen if the price begins rising and takes out that $1.5B short liquidation level at $97K.”
Bitcoin exchange liquidation map (screenshot). Source: CoinGlass
Sina added that Bitcoin had a chance to launch…
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