Analysts See Signs of Bitcoin Stabilization After Recent Fluctuations

Bitcoin started the week on the decline, falling to around $83,000 on Monday. However, it rallied significantly on Tuesday, climbing back towards $90,000, then extended that momentum on Wednesday with further gains. This series of movements leads several analysts to believe that the cryptocurrency could approach a bottom in the short term, as selling pressures ease and the market shows signs of stabilization.

Market dynamics and reduced leverage

According to Bitfinex analysts, the market is starting to stabilize after a period of high volatility. The exit from leveraged positions has slowed, and many short-term holders have exited, reducing overall pressure. Early signs indicate that the pace of sales is waning, creating a basis for potential consolidation and modest gains.

This stabilization was visible during Wednesday's trading, when bitcoin briefly approached $94,000 before settling around $92,600. Bitfinex noted that the reduction in leverage now makes the market less vulnerable to sudden declines triggered by forced liquidations.

This configuration reinforces the idea that the remaining leverage is relatively well contained, reducing systemic fragility and improving the prospects for a more stable consolidation phase.

Bitfinex Analysts

Looking back, recent market volatility dates back to mid-October, marked by several events that generated significant pressure in the crypto sector:

• The debt overhang triggered approximately $19 billion in losses on October 10, creating severe stress across the market.
• The fallout from these losses led to broader selling, sending bitcoin down to around $82,000 on November 21.

Bitcoin faces mixed signals

These fluctuations have led analysts to question the relevance of bitcoin's historic four-year cycle, a cycle that would normally have pushed the asset above its October peak. Likewise, November, usually bitcoin's strongest month, with average gains of 41.12%, ended this year with a drop of 17.67%.

Despite this atypical performance, some analysts remain optimistic about the earnings potential in the new year. The Plan C analyst emphasizes that the current cycle differs from previous onessuggesting that historical patterns may not fully apply.

However, opinions remain divided. Ki Young Ju, founder and CEO of CryptoQuant, highlights several bearish on-chain indicators and warns that a lack of macroeconomic liquidity could usher in a bearish phase. For his part, analyst Quinten Francois believes that bitcoin seems closer to its recent lows than its highs, illustrating a marked caution in the market.

Analysts aim for $100,000 for bitcoin as year-end target

Conversely, some experts remain optimistic about the short-term outlook. Tom Lee, president of BitMine, says bitcoin could return to $100,000 before the end of the year. Analyst Michaël van de Poppe adds that maintaining support at $91,800 could allow a rapid rise towards this threshold, driven by liquidity and possible short squeezes. A drop below this level could trigger a brief wave of long liquidations, bringing the price back to the $88,000-$89,000 area. However, the overall upward trend would remain intact.

With only a few weeks until the end of 2025, the trajectory of bitcoin remains uncertain. LVRG Research analysts, including Nick Ruck, nevertheless observe a shift from panic selling to strategic accumulation on the part of long-term holders. As reported by Tremplin.io in November, this shift, coupled with anticipated rate cuts by the Fed and growing institutional adoption, could create the conditions for a potential end-of-year rally, the so-called “Santa rally.”