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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
12/04/2025

Bitcoin Gearing Up for a Relief Bounce? Signals Point to Stabilization

After more than a month of heavy volatility and a massive leveraged liquidation cascade, Bitcoin is showing signs of stabilization. Analysts believe the market may be setting up for a short-term recovery — known as a relief bounce — as multiple on-chain indicators and derivatives market data suggest selling pressure has weakened. Signs of a "local bottom" forming? In their latest report, the Bitfinex analyst team noted that a combination of: * Extreme deleveraging

Bitcoin Gearing Up for a Relief Bounce? Signals Point to Stabilization

After more than a month of heavy volatility and a massive leveraged liquidation cascade, Bitcoin is showing signs of stabilization. Analysts believe the market may be setting up for a short-term recovery — also known as a relief bounce — as multiple on-chain indicators and derivatives market data suggest selling pressure has weakened.

Signs of a "Local Bottom" Forming?

In their latest report, the Bitfinex analyst team noted that a combination of:

  • Extreme deleveraging
  • Short-term holder capitulation
  • Seller exhaustion signals

is creating "a favorable environment for Bitcoin to stabilize and potentially bounce in the near term."

Just before the report was published, Bitcoin surged nearly 8% in a single day, pushing close to the $94,000 level before pulling back slightly. At the time of writing, Bitcoin was trading around $91,000, according to CoinMarketCap data.

The Market Is Now Operating on a "Cleaner Leverage Base"

Bitfinex noted that the market has shed most of its high-risk leverage following the $19 billion liquidation event on October 10 — an event many analysts have called "the largest leverage flush in Bitcoin's history."

That event dragged Bitcoin's price down to the $82,000 zone on November 21, triggering a wave of forced exits among short-term leveraged traders.

However, the very act of flushing out that leverage has left the market:

  • less fragile,
  • at lower risk of a cascading liquidation event,
  • and on firmer footing for a new accumulation phase.

Bitfinex views this as the key factor that could allow Bitcoin to stabilize once again.

Year-End Season: Is Bitcoin Defying Historical Patterns?

While December is historically a quiet month for Bitcoin — averaging just 4.69% gains since 2013 — 2024 is not following the seasonal script.

November — traditionally Bitcoin's strongest month, with an average return of 41% — closed down 17.67%, breaking the conventional seasonal pattern.

Some analysts argue the four-year cycle no longer carries the same weight it once did. User PlanC wrote on X:

"Bitcoin's cycle this year is NOT like any previous cycle."

Meanwhile, analyst Quinten Francois noted:

"Bitcoin is currently closer to a bottom than a top."

Even BitMine Chairman Tom Lee continues to believe Bitcoin could reclaim the $100,000 mark before the year is out.