Some analysts highlight CME gap closure and a reset of downside liquidity as potential conditions for a rebound, with a view that the pullback could represent a healthy reset and a possible local bottom near RSI around 30.

November was the worst month for Bitcoin in 2024, down 17.49%, its weakest November since 2018, with the month ending on a sharp weekend decline that rekindled market fear and extended the downside in 2025.

Bitcoin finished the week at $90,411, marking the first green weekly candle in four weeks, though the weekend drop erased that gain.

Bitcoin dropped nearly 5% in about three hours over the weekend, sliding from roughly $91,500 to $86,950 on Coinbase as it failed to break key resistance, triggering broad liquidations across crypto markets totaling about $539 million and affecting more than 180,000 traders.

At the time of reporting, Bitcoin hovered around $86,565, trailing about 86% of the top 100 cryptos in year-to-date performance, though some analysts remain optimistic.

Analysts note the drop was driven by a cascade of heavily margined positions and a domino effect of liquidations rather than a single fundamental trigger, indicating a liquidity-driven sell-off.

More than 180,000 traders were liquidated in the past 24 hours, amounting to around $539 million, with the vast majority being long positions in BTC and ETH, according to CoinGlass.

A number of analysts remained bullish despite the pullback, suggesting it could set up a move for the month, and noting there was no Sunday pump and that the CME gap had closed.

The move is attributed to frenzied selling volume amplified by leveraged positions, not a specific news catalyst, described as a domino effect from fragile leverage.

Most liquidations were from long positions, and open interest fell sharply after a period of elevated leverage, signaling exhaustion and capitulation among short-term holders.

Liquidity drain began with downside selling pressure, with longs dominating liquidations, pointing to volatility driven by liquidity rather than a new fundamental trend.