Analysts Spot Stabilization Trends in Bitcoin After Recent Swings

Bitcoin's wild ride might be hitting a smoother patch—analysts are pointing to signs of stabilization after the recent volatility.

Reading the Charts

Market watchers are seeing patterns emerge that suggest the king crypto is finding its footing. The extreme price swings that defined the last few weeks appear to be calming, replaced by tighter trading ranges and consolidating support levels. It's not a straight line up, but the chaotic energy is dissipating.

The Calm After the Storm?

This potential stabilization phase is critical. It allows the market to digest previous moves, builds a stronger foundation for the next leg, and—let's be honest—gives everyone's nerves a chance to recover. For traders, it means adjusting strategies from reactive panic-buying or selling to more measured position-building.

Of course, in crypto, 'stable' is a relative term. A quiet week for Bitcoin would still give a traditional finance portfolio manager heart palpitations—probably while they're busy over-engineering another doomed stablecoin project.

Watch this space. If the stabilization holds, it sets the stage for the market's next big narrative.

In brief

• Bitcoin started the week lower but quickly recovered, showing signs of easing selling pressure,
• Reduced leverage and exit of short-term holders have helped stabilize the market.
• Analysts remain divided, with some warning of risks while others see a foundation for modest gains and potential to reach $100K.

Market Dynamics and Reduced Leverage

According to Bitfinex analysts, the market is starting to settle after a period of heavy volatility. The unwinding of Leveraged positions has slowed, and many short-term holders have exited, reducing overall pressure. Early signs indicate that the pace of selling is diminishing, creating a foundation for potential consolidation and modest gains.

This stabilization was evident in Wednesday’s trading, when Bitcoin briefly approached $94,000 before settling around $92,600. Bitfinex noted that reduced leverage has made the market less vulnerable to sudden declines triggered by forced liquidations. 

This configuration strengthens the case that the market’s remaining leverage is relatively well-contained, reducing systemic fragility and improving the prospects for a more stable consolidation phase.

Looking back, the market’s recent volatility can be traced to mid-October, due to events that created significant pressure in the crypto sector:

• Overleveraging triggered roughly $19 billion in losses on October 10, leading to major strain across the crypto market.
• The fallout from these losses led to broader sell-offs, with Bitcoin declining to around $82,000 by November 21.

Bitcoin Faces Conflicting Signals

These swings have prompted analysts to question the relevance of Bitcoin’s historical four-year cycle, as the pattern WOULD have taken the cryptocurrency above the record level set in October. Similarly, November, normally Bitcoin’s strongest month with average gains of 41.12%, instead recorded a 17.67% decline.

Despite this unusual performance, some analysts remain optimistic about potential gains into the new year. Market analyst Plan C noted that the current cycle differs from previous ones, suggesting historical patterns may not fully apply.

However, opinions among analysts remain divided. Ki Young Ju, founder and CEO of CryptoQuant, highlighted bearish on-chain indicators and warned that a lack of macro liquidity could usher in a bear phase. Likewise, analyst Quinten Francois remarked that bitcoin appears nearer to its recent lows than its highs, reflecting caution in the market.

Analysts Eye $100,000 for Bitcoin as Year-End Target

On the other hand, some experts remain optimistic about Bitcoin’s near-term prospects. Tom Lee, chair of BitMine, expressed confidence that the cryptocurrency could reclaim $100,000 before year-end, while analyst Michaël van de Poppe emphasized that holding the $91,800 support level could enable a swift MOVE toward that mark, supported by liquidity and potential short squeezes. A decline below this point could trigger a brief wave of long liquidations, pushing prices into the $88,000–$89,000 range, but the broader upward trend would remain intact.

With only a few weeks remaining in 2025, Bitcoin’s trajectory remains uncertain. Analysts at LVRG Research, including Nick Ruck, have observed a shift from panic selling to strategic accumulation by long-term holders. As previously reported by Cointribune in November, this change, combined with anticipated Fed rate cuts and growing institutional adoption, could set the stage for a potential year-end rally, known in the market as a “Santa rally.”

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