Bitcoin Faces Critical $92.5K Level as Traders Brace for Sell-Off

Bitcoin’s recent price drop has left traders on edge, as a crucial $92,500 support level now becomes the focal point for any potential recovery or further decline. On November 26, the cryptocurrency’s price bounced off multiday lows after a rough day wiped out over $500 million in leveraged long positions. Despite the modest recovery, traders are cautious, watching whether bulls can defend this critical zone to avoid a deeper correction.

Traders Eye $92,500 BTC as Key Support Zone

According to Cointelegraph, Bitcoin hit a local bottom around $92,600 on Bitstamp, but the price action still lacks solid confirmation of support. Keith Alan, co-founder of trading resource Material Indicators, pointed out that “nothing about this chart resembles a validated support test for BTC.” He warned that the bounce could be a trap for long positions, with the market still showing weakness.

On the other hand, prominent trader Skew emphasized that the $92.5K to $92K range is now vital for bulls. “Losing that I think the market as a whole would sell off,” he tweeted. He also noted the importance of this level, calling it a “pivotal price between higher & a deeper correction.”

Leverage Plays a Big Role in BTC’s Current Volatility

Bitcoin’s price volatility is also being driven by high leverage in the market. As Sina, co-founder of 21st Capital, observed, the liquidations have already swept away “all the levered longs,” which could mean more upside potential if the price begins to rise again. “Now imagine what can happen if the price begins rising and takes out that $1.5B short liquidation level at $97K,” Sina added.

With over $525 million in total crypto liquidations in just 24 hours, Bitcoin’s price action remains highly sensitive to market sentiment. If the $92.5K support level fails to hold, traders could face even more turbulence, setting the stage for a deeper market correction.

At the time of writing, Bitcoin is sitting at $92,315.01.