Early morning market movements: How Bitcoin seeks support amid pressure

Morning Market Overview: BTC Under Pressure and Key Levels Broken

As the trading day begins, the crypto market continues its correction that has lasted over a month, with Bitcoin’s performance directly impacting the entire ecosystem. According to the latest data, BTC is currently quoted at 92.52K, down -1.25% over the past 24 hours. This wave of correction is not an isolated phenomenon—US stocks are also weakening, and risk assets are broadly under pressure.

Bitcoin has for the first time since April fallen below the critical level of 87,000 USD, drawing widespread attention from market participants. Behind a decline of over 4%, there are sharp shifts in short-term capital flows and a clear decline in new buyer interest. The upward momentum that once supported prices earlier this year has now quietly dissipated into market volatility.

Whale Activity Frequent, Leverage Liquidation Chain Reactivated

The current correction is driven by multiple factors. Continuous short-term trader position closures over several weeks, combined with large holdings accumulated after record gains in October, have increased market fragility. When liquidity conditions shift slightly, it can trigger chain reactions—selling pressure rapidly spreads, and volatility sharply amplifies.

Crypto market analysts note that large institutional investors are adjusting their asset allocations according to a four-year cycle logic, a phase historically associated with high risk of price declines. Data shows that since September, major holders have sold over 20 billion USD worth of assets. While this cycle theory is debated on fundamental grounds, its self-fulfilling prophecy has taken shape—market participants’ expectations and behaviors reinforce each other, pushing prices lower.

US Stocks Volatility Intensifies, Cross-Asset Divergence Widens

Macroeconomic uncertainties are also amplifying pressure on the crypto market. Strong earnings from tech giants like NVIDIA initially sparked a rally in US stocks, but concerns over high valuations of AI-related stocks and doubts about the Federal Reserve cutting interest rates in December quickly dissipated this momentum.

Increased volatility on Wall Street directly transmits to the crypto market, which also faces its own leverage liquidations and waning retail demand. This cross-asset divergence has become more pronounced since early October, with risk assets broadly struggling.

Options Market Signals, Risk Prevention Upgrades

Traders are shifting their focus to lower defense levels. According to options market data, the highest demand for downside protection is at the 85,000 USD level, followed by 82,000 USD. These levels have become important psychological anchors for the market. Investors are preemptively positioning for larger corrections, reflecting a clear shift in market sentiment.

Liquidity Drying Up, Even Small Capital Flows Can Trigger Turmoil

Recalling the violent liquidation wave in October, where daily forced liquidations of leverage positions exceeded 19 billion USD, this shock not only halted upward momentum but also drained liquidity from major trading platforms. The order books have not fully recovered, meaning the market’s capacity to absorb price movements has significantly decreased— even relatively modest capital flows can trigger chain reactions.

Policy Uncertainty Suppresses Risk Appetite

Off-exchange market participants admit that, amid current data vacuum, the Federal Reserve’s policy direction remains highly uncertain. This uncertainty is more suppressive to investors’ risk appetite than any specific negative news, especially for high-volatility assets like Bitcoin. The market is no longer chasing gains but is instead cautious about downside risks.

The opening of each trading day often hints at subsequent trends. Bitcoin’s current under pressure and downward break of key levels may be a necessary step for the market to reprice and rebalance itself.