Important points:
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Currently, high liquidity bids are concentrated around $105,000 to $100,000, suggesting that the market is stabilizing.
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Over 90% of BTC supply remains profitable, confirming that this was a leverage-driven sell-off rather than a panic.
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A return to $117,500 could reverse the correction and turn the market bullish.
Bitcoin (BTC) is entering what analysts call a “cleansing phase” as deep buy orders begin to concentrate below the $105,000 level following a major deleveraging event.
Trading resource Material Indicators said order book data indicates “strong selling pressure on BTC” with technical support limited around $107,000. While this level may be sustained temporarily, analysts observe that there may not be enough bidding liquidity to sustain current levels.
Instead, there is a concentration of larger buy orders from $105,000 to $100,000. A break below $105,000 could refocus the annual $93,500 opening price as a long-term price magnet.
Meanwhile, blockchain analysis firm Glassnode said Bitcoin is starting to stabilize after a recent correction and remains above its 135-day moving average.
The analysis platform said Young Supply MVRV, which measures the unrealized gains of short-term holders, has been “reset towards 1.0.” This suggests the market has cooled from extreme speculation as new investors are no longer content with huge profits, reducing pressure for further selling.
Glassnord also said the current economic downturn is different from previous capitulation events. More than 90% of Bitcoin’s circulating supply is still profitable, meaning that most of the recent losses have come from traders who bought near the all-time high. In past crashes, such as the FTX and Terra Luna crashes, less than 65% of supply was profitable, a sign of broader panic. This correction appears to be more of a leverage-driven event than a widespread sell-off.
Adding to that view, Bitcoin analyst Axel Adler Jr. said the market’s behavior during the recent pullback reflects a mature response to volatility. Spot trading volume soared to about $44 billion, futures trading volume reached $128 billion, and open interest fell by $14 billion, of which only about $1 billion was forced into long-term liquidation.
In other words, Adler seems to believe that about 93% of the deleveraging was “unforced,” pointing to a controlled reduction in leverage rather than a cascading liquidation event.
Related article: Elon Musk promotes Bitcoin as energy-based and resistant to inflation, unlike “fake fiat currencies”
Bitcoin bulls are on the rise to $117,500, but will they be able to get it?
With the market stabilizing, $117,500 is a key resistance level for bullish continuation. A strong daily close and consolidation above this area could quickly turn the recent correction into another rally within the next week.
However, Bitcoin is likely to trade sideways from $110,000 to $100,000 as it attempts to form a new bottom. The recent low near $101,500 recorded on October 10 could be retested before a more convincing range bottom appears above the $100,000 level.
On a higher time frame, crypto trader Marline observed that Bitcoin is currently retrying a multi-year uptrend that has continued unscathed since 2022. Historically, this trendline has served as the starting point for each correction in the current cycle.
If this holds again, it would suggest that the broader bull market structure is intact and that the recent drawdown signals a mid-cycle reset rather than the beginning of a deeper decline.
Related: 3 reasons why Bitcoin’s rise to $125,000 could be delayed
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.