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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

Is 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 and derivatives indicators suggest selling pressure has eased. Signs of a "local bottom" forming? In their latest report, the Bitfinex analytics team noted that a combination of: * Extreme deleveraging

Is 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 and derivatives indicators suggest selling pressure has eased.

Signs of a "Local Bottom" Forming?

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

  • Extreme deleveraging
  • Short-term holder capitulation
  • Signs of seller exhaustion

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

Just before the report was published, Bitcoin had already surged nearly 8% in a single day, pushing toward 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 Running on a "Cleaner Leverage Base"

Bitfinex noted that the market shed the majority of its high-risk leverage following the $19 billion liquidation event on October 10 — an event many analysts 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 exits from short-term leveraged traders.

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

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

Bitfinex argues this is precisely the key factor that could allow Bitcoin to stabilize once again.

Year-End Season: Is Bitcoin Bucking Historical Trends?

While December has historically been a quiet month for Bitcoin — averaging just 4.69% gains since 2013 — 2024 has not followed the historical playbook.

November — traditionally Bitcoin's strongest month, with an average return of 41% — actually fell 17.67%, breaking the usual seasonal patterns.

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

"This Bitcoin cycle is NOTHING like any previous cycle."

Meanwhile, analyst Quinten Francois noted:

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

BitMine Chairman Tom Lee, for his part, still believes Bitcoin could reclaim the $100,000 mark before the year is out.