Peter Smith
⬤ Bitcoin is holding near the $88,000 level after what traders are calling a "violent reset" in leveraged positions. Despite the recent drawdown, market conditions don't show signs of panic. Instead, BTC appears to be stabilizing and catching its breath after an overheated rally that pushed prices significantly higher through 2024 and into early 2025.
⬤ The weekly chart shows Bitcoin consolidating between $88,000 and $89,000, with key resistance mapped at around $125,000 (the potential 2025 high) and a higher target zone near $156,000. The current price action represents a cooling-off period after a strong multi-quarter advance, with the market now digesting previous gains.
⬤ Leveraged positions have already been flushed out during the sharp decline, which typically happens when overleveraged traders get squeezed. The lack of follow-through panic selling suggests the worst may be over. The chart hints at a possible recovery path where BTC could eventually retest the 2025 highs before potentially pushing higher.
⬤ Bitcoin remains highly sensitive to leverage dynamics and macro sentiment shifts. If the market has truly moved from stress to stabilization, it could set the stage for renewed momentum heading into 2026. With BTC still trading well above major accumulation zones and long-term targets pointing higher, the focus now is whether this consolidation evolves into a new uptrend or extends into a longer digestion phase.
Peter Smith
