Theories and debates continue to swirl around whether the Bitcoin price is merely feeling the effect of a naturally volatile crypto market or the bear season is slowly kicking in. A specific hypothesis explains that a loss of a certain technical level could spell a longer period of correction for BTC.
XWIN Research revealed that the decreased expectations for a December rate cut are one of the reasons behind the recent decline. The shift in the Federal Reserve’s stance dragged the Bitcoin price below the key $100,000 level.
Finally, XWIN Research revealed that the excessive leverage in the market unwound violently. “Once major supports broke, cascading liquidations triggered more than 600 million USD in forced long closures within hours. Added to this were exchange-related rumors and DeFi security incidents, pushing sentiment into extreme fear,” the analytics firm wrote.
XWIN Research wrote in its Quicktake post that this $92,000 breakdown could see the Bitcoin price correction linger until early or mid-2026. However, the DeFi analytics firm noted that recent on-chain data offers a more optimistic outlook for the market leader.
XWIN Research added:
Several catalysts could drive the next recovery. The most important is an improvement in macro conditions: a shift toward rate cuts or broader liquidity expansion in 2026 would draw capital back into risk assets.
As of this writing, the price of BTC stands at around $94,930, reflecting a nearly 4% decline in the past 24 hours.
