Analysts warn Bitcoin may face more selling pressure if it drops under $80,000, as market data shows fear among short-term holders.
Bitcoin has been through a heavy decline over the past week.
Recent drops created debate among traders as analysts study the situation to see if the market has reached a stable point or if more selling is on the way.
Some market watchers expect further weakness, while others believe the worst part of the decline has already passed.
Bitcoin’s recent liquidation wave raises new concerns
A massive slide shook the market after a strong liquidation event wiped out thousands of highly leveraged positions.
In a recent X post, analyst James Check described the drop as a 2 sigma long liquidation event. He said the move removed many risky traders who held oversized positions.
He also warned that some leverage is still on the table. He believes the market may still flush out the last group of traders who refuse to exit.
We just witnessed a 2-sigma long liquidation event, wiping out a chunk of degen gamblers.
While most leverage is gone, don’t forget that the market has an incredible nose that can sniff out the final hold-outs.
We wouldn’t be too surprised if we wick into the $70k-$80k zone to… pic.twitter.com/b0FARJrn09
— _Checkonchain (@_checkonchain) November 25, 2025
Check said a final move into the $70,000 to $80,000 range would not be surprising. The comment raised fresh worries among traders who fear another strong downside move.
For some context, a 2 sigma event refers to a fast price swing that sits two standard deviations away from normal activity. Such moves tend to trigger large sell orders from traders on margin and this can push prices down fast.
Bitcoin dropped more than $24,000s in only ten days. The coin hit a seven-month low of around $82,000 on November 21 and the speed of the decline put pressure on long positions across major exchanges.
Oversold conditions cause some traders to look for a local bottom
Markets showed signs of relief after the large sell-off. Some technical signals are now pointing toward oversold conditions. The recent lows may hold as long as no fresh stress appears from outside events.
Analysts expect BTC to trade between $82,000 and $92,000 for now. Bitcoin currently has a strong support area near $78,000 and a break below that level could open space for deeper losses.
Even though a major drop is not his base view, he still sees that level as important.
Has Bitcoin Found Its Bottom? Cohorts Tell the Whole Story
“BTC may have formed a local bottom, supported by a strong rebound and accumulation from:
100–1k BTC holders.
>10k BTC holders.
However, the crucial 1k–10k BTC cohort is still distributing, preventing a full… pic.twitter.com/dGU4CBD1Bw
— CryptoQuant.com (@cryptoquant_com) November 25, 2025
Other on chain analysts agree that a bottom may be forming. CryptoQuant noted that the market was showing signs of institutional redistribution. Analyst Carmelo Alemán said current data reflects weakness but also shows early signs of a rebound.
He believes the market may be pushing toward a short-term bottom.
Alemán added that whale behaviour is a major factor. So far, large holders that control 1,000 to 10,000 BTC have been selling. This activity continues to weigh on market confidence, and he said a clear trend change among these whales is needed before a full trend reversal can form.
Related Reading: Strategy Defends Balance Sheet With 5.9x Bitcoin Debt Coverage
Analysts warn about a drop under $80,000
Strong warnings surfaced from traders studying options and spot flows. Many believe the zone between $73,000 and $84,000 acts as a heavy pressure point for the near term.
The range marks the average cost for several major buyers, such as large funds and asset managers.
A fall under $80,000 could draw in new selling from those who entered near that level. Psychological levels often attract heavy trading once broken and a drop under this point may drive BTC toward the $60,000 area.
Such a move could trap the coin inside a long stretch between $60,000 and $80,000.
Notably, recent data shows sharp selling from short term holders. This cohort sent more than 62,000 BTC to exchanges at a loss. Exchange inflows recently hit 81,000 BTC on November 22.