.png){kind=logo}
Bitcoin entered its fourth straight weekly loss and posted its longest downtrend since June 2024, even as the asset attempted to recover part of last week’s decline. The market showed a sharp fourth-quarter drawdown with losses of 24.43%, placing this period on track to become Bitcoin’s weakest fourth-quarter performance since 2018.
At the same time, new on-chain data showed a rise in spot demand and a surge in long liquidations near the $86,700 level, revealing a split between leveraged traders and buyers seeking a potential bottom.
Bitcoin long liquidations increased sharply across all exchanges. Data from CryptoQuant showed liquidation spikes that matched levels last seen during the November 2022 FTX collapse. Several liquidation bursts formed near price zones around $100,000, $80,000, $70,000, and $60,000.
Traders increased long positions during the correction. This activity created vulnerable conditions that led to clusters of forced liquidations. The chart showed large bars of long liquidations throughout late 2024 and 2025 as traders attempted to time market lows.
The data compared these events to the FTX crash. On November 8, 2022, long positions worth 10,600 BTC were liquidated. The October 2024 crash recorded 9,307 BTC in liquidations. Meanwhile, November 14 and November 21 produced even larger spikes of 10,430 BTC and 9,450 BTC. These values showed deep leveraged exposure across the market.
A key on-chain signal pointed to stronger demand during the decline. The aggregate spot bid-ask delta at 10% depth surged to its second-highest level in 2025. This move suggested increased dip-buying activity during the sell-off.
Historical behavior offered context. When the same metric spiked after a long drawdown in March and April, Bitcoin formed a local bottom. That move preceded a 64% bull run. Traders tracked the metric closely because similar conditions formed this month.
Market participants questioned whether this renewed activity could support a near-term recovery.
Federal Reserve expectations shifted sharply. Rate-cut odds for December rose from 40% to almost 70% within one week. This change supported part of Bitcoin’s weekend recovery. Yet analysts monitored ongoing risks linked to inflation concerns and slower transitions into quantitative easing.
Digital asset treasuries traded below their net asset value. This limited their ability to accumulate during the downturn. Spot Bitcoin and Ethereum ETFs also traded in negative territory, adding pressure.
Read More: Bitcoin Price Recovers Slightly Above $86,000 After Heavy ETF Outflows
Options data pointed to a cautious stance. Traders added large put positions for December 2025, mostly in the $80,000 to $85,000 range. This build-up suggested active downside protection across the market.
Analysts tracked the possibility of a temporary move into the mid-$70,000 range before a rebound toward $90,000 by year-end, depending on Federal Reserve signals. Market sentiment stayed in extreme fear territory although it improved after the weekend bounce. Could rising dip-buying interest offset heavy long liquidations?
Bitcoin faces a challenging period marked by four straight weekly losses, rising long liquidations, weak ETF flows, and cautious options positioning. Yet stronger BTC spot demand and shifting Federal Reserve expectations suggest growing interest at lower prices. Traders should monitor leverage conditions and rate signals for the next decisive move.
