Despite signs of stabilization, experts warn that lingering leverage and whale distribution could send Bitcoin briefly into the $70K–$80K zone.
Bitcoin’s recent sell-off has rattled the market, and although prices have stabilized above $82,000, analysts warn that the correction may not be fully over. Fresh assessments of market structure, liquidation flows, and whale activity suggest that a final leverage flush could still push the world’s largest cryptocurrency below the $80,000 threshold.
Analysts Warn of Potential Wick Toward $70K–$80K
Market strategist James Check recently described the sharp decline—which erased over $24,000 from Bitcoin in just ten days—as a “2-sigma long liquidation event,” indicating a statistically large washout of overleveraged long positions. According to him, while most of the speculative leverage has already been cleared, “the market has a nose for flushing out the last pockets of high-risk positions.”
He added that a deeper price wick is possible:
“We wouldn’t be too surprised if Bitcoin dips into the $70K–$80K area to remove the remaining leverage.”
This type of liquidation pattern historically signals the end of aggressive long speculation, but it often comes with one last sharp downside extension before recovery.
Oversold Conditions Suggest a Local Bottom Could Be Forming
Despite the threat of a final flush, market sentiment has turned cautiously optimistic. Augustine Fan, head of insights at a crypto trading software provider, noted that Bitcoin is extremely oversold based on technical indicators such as Bollinger Bands, suggesting exhaustion in the selling pressure.
Fan explained:
“Market conditions are stretched on both sentiment and technical fronts. Unless a new external shock emerges, prices have likely established a local low.”
She expects Bitcoin to trade within $82,000 to $92,000, with $78,000 identified as a critical support zone.
“A decisive break below would open the door to deeper losses, though this is not the primary expectation right now.”
Whale Activity Signals Caution
Blockchain data also points toward stabilization, but analysts warn that whale behavior remains a crucial factor. Recent on-chain insights indicate a local bottom forming, driven by institutional repositioning and structural realignment.
However, the 1,000–10,000 BTC cohort continues to distribute holdings, limiting the strength of any rebound. As CryptoQuant researcher Carmelo Alemán noted:
With oversold signals appearing but leverage risks still in play, Bitcoin’s short-term direction remains at a pivotal juncture. The market may be stabilizing, yet a final leverage flush into the $70K–$80K range cannot be ruled out until whale distribution eases and volatility cools.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.