On November 6, 2025, Bitcoin staged a tentative rebound, briefly pushing past the $104,000 barrier after a recent plunge that saw it fall below the key $100,000 level for the first time since June. This recovery attempt occurs within a fragile market landscape, characterized by significant liquidations and a notable shift in sentiment among different classes of investors.
A Volatile Session and a Broader Sell-Off
The intraday swings on November 6 highlighted the market’s volatility, with Bitcoin oscillating between $101,285 and $104,535 before closing the day around $103,744. This brief rebound must be viewed in the context of a substantial broader correction. Just a month after hitting a record high above $126,000, Bitcoin had tumbled more than 20%, with the recent dip below $100,000 erasing about $300 billion from the total digital-asset market value. This downturn has been frustrating for bulls, occurring even as other assets like stocks and gold were enjoying record rallies until very recently.
The Domino Effect of Leverage and Liquidations
The sharp price decline triggered a massive liquidation event in the derivatives market. Estimates suggest that between $1.2 billion and $1.7 billion in leveraged positions were forcibly closed. This cascade of liquidations affected the entire market, with Ethereum accounting for approximately $570 million, Bitcoin around $488 million, and Solana about $92 million. These forced sales amplified the downward price move and pushed overall market sentiment to “extreme fear” levels.
Contradictory Signals Beneath the Surface
Beneath the surface of the price action, on-chain data presents a complex and somewhat contradictory picture. The recent retracement was not driven solely by retail panic; reports indicate that long-term holders divested approximately 400,000 BTC, worth about $45 billion. This large-scale unwinding by historically steadfast investors amplified the drop and suggests a significant recalibration of risk in institutional portfolios and corporate treasuries.
Simultaneously, data shows a rise in the number of large holder addresses, often called “whales”, to 1,455. This indicates accumulation by large players, a signal that has historically preceded price rebounds. This creates a notable divergence: while a significant 29% of the Bitcoin supply is now “underwater”—meaning it was bought at prices above current levels—whales appear to be using the downturn to accumulate, pointing to a clash between short-term pain and potential long-term conviction.
Navigating the Pivotal Support Zone
For traders and treasury managers, the immediate future hinges on Bitcoin’s ability to hold key support levels. The zone between $104,000 and $107,000 has become a critical battleground. A sustained break above this area could stabilize the market and pave the way for a more robust recovery. However, if these levels are lost, it could accelerate a deeper correction. Market participants are advised to monitor the evolution of leveraged positions and the ability of buyers to defend this support zone, as these factors will be decisive for the short-term direction.
