Bitcoin’s price is at a critical juncture following a volatile market session. On November 26, Bitcoin holds key $92,500 support level after $500M liquidations, marking a pivotal moment for its future trajectory. Despite a modest recovery from a major sell-off that wiped out over $500 million in long positions, traders remain cautious. The $92,500 support level is now the focal point, with a failure to hold potentially leading to further declines, while defending it could spark a renewed rally.
The recent sell-off pushed Bitcoin to a local low of $92,600 on Bitstamp before a minor recovery. However, uncertainty lingers as market participants evaluate whether the $92,500 mark can act as a reliable support. Keith Alan, co-founder of Material Indicators, described the bounce as lacking confirmation of a solid base. He cautioned traders about the possibility of a bull trap, noting that the price action has yet to validate $92,500 as a strong support.
Prominent trader Skew emphasized the importance of the $92,500–$92,000 range. He warned that breaking below this zone could trigger a larger sell-off, while successfully defending it might allow Bitcoin to resume its upward momentum. The recent pullback from the $93,500 high mirrors similar percentage drops seen in November, further underscoring the importance of holding this level.
Data from CoinGlass revealed that over $525 million in crypto positions were liquidated within 24 hours, reflecting the ongoing market volatility. The liquidation of long positions has momentarily reduced upward pressure on Bitcoin. Sina, co-founder of 21st Capital, noted that a potential recovery could result in a short squeeze if Bitcoin nears $97,000, where approximately $1.5 billion in short positions are concentrated.
Despite the liquidation event, leverage levels in the market remain high, keeping Bitcoin vulnerable to further price swings. Axel Adler Jr. from CryptoQuant warned that bears might seize the opportunity to push prices lower if Bitcoin tests the $93,000 resistance level again.
The next few days are crucial as traders monitor Bitcoin’s ability to hold above $92,500. A solid defense of this level could restore bullish confidence, while a break below might lead to a deeper correction. As volatility persists, both bulls and bears are bracing for the next move in Bitcoin’s price trajectory.
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