Bitcoin Recovery Strengthens After Market Correction But Investor Jitters Remain

Bitcoin (BTC) has begun a steady recovery after last week’s steep correction, moving back toward the $87,000 to $90,000 range. The cryptocurrency fell from $106,000 to $80,600 in just 10 days, prompting renewed speculation over whether BTC has reached a local bottom. The rebound comes even as major whale holders continue to sell their BTC, though mid-sized holders and long-term accumulators are showing increased conviction in the market. Accumulation and Distribution Patterns Onchain analytics reveal significant differences in behavior between various BTC holder cohorts. Wallets holding more than 10,000 BTC, along with institutional investors holding 1,000 to 10,000 BTC, acted as consistent sellers during the correction, contributing to downward pressure. Retail wallets, defined as holding less than 10 BTC, also sold off over the past 60 days, providing little market support. In contrast, mid-sized holders in the 10–100 BTC and 100–1,000 BTC ranges accumulated BTC, helping absorb sell-side pressure and stabilize prices. Demand from Bitcoin “accumulator addresses” hit a record 365,000 BTC on Nov. 23, up from 254,000 BTC on Nov. 1, indicating growing long-term confidence among certain investors. Futures Market and Short Squeeze Potential The recent BTC crash was largely fueled by futures markets , where cascading long liquidations, forced selling, and margin calls pushed BTC into the $80,000 range. CryptoQuant data shows that traders attempting to long the correction have been squeezed out, with daily funding rates briefly turning negative. Analyst Darkfost warned that if shorts continue to pile up while BTC gradually rises, the market could enter a “disbelief phase,” creating the conditions for a sharp short squeeze. Long liquidation heatmaps from Hyblock Capital indicate $2.6 billion in long liquidations at $80,000, while short liquidations surged over $8.4 billion near $98,000, showing the influence of liquidity bands at $94,000, $98,000, and $110,000. These dynamics suggest that BTC’s rebound may continue toward the $90,000 mark as mid-sized holders and accumulators provide steady support.