Bitcoin Shows Early Signs of Stabilization After Capitulation Sell-Off
Bitcoin is trying to shake off last week’s sell-off after sliding to the $80,000 zone, bouncing sharply at the start of the week and reclaiming levels around $86,000.
Key Takeaways
- Bitcoin’s bounce remains fragile — $80,000 is the critical support zone.
- Metrics signal sellers are nearly exhausted, hinting at a possible market bottom.
- A small final dip to fill the CME gap is still possible before a full recovery begins.
The move has eased panic across the market, but analysts are split on whether the rebound marks the beginning of a sustained turnaround — or a temporary pause before the next leg down.
Multiple trading indicators captured on social platforms over the past 24 hours point to a pivotal moment for BTC rather than a definitive reversal.
BTC Approaches 100-Week SMA — A Level With a History of Trend Shifts
A widely-shared chart from Trader Tardigrade shows Bitcoin descending toward the 100-week simple moving average (SMA) — a long-term support level that has cushioned major downturns in previous cycles.
$BTC/weekly#Bitcoin is looking for support at 100 SMA ✍️ pic.twitter.com/BrG3aqM0yj
— Trader Tardigrade (@TATrader_Alan) November 24, 2025
The prior time BTC retested the 100-SMA, it served as the launchpad for a significant bullish phase. If history repeats, the current decline could become a similar accumulation opportunity.
However, not everyone is convinced the SMA will hold on the first attempt.
CME Gap Below Price Raises the Risk of Another Dip
Crypto Rover’s chart highlights a CME futures gap sitting beneath the current BTC price, implying unfinished price action lower on the chart.
CME gap forming below Bitcoin.
Be careful! pic.twitter.com/XmB8wZ9P6T
— Crypto Rover (@cryptorover) November 24, 2025
Historically, Bitcoin tends to revisit CME gaps before establishing a full trend reversal. Traders warn that if market momentum cools again, price could attempt to fill that gap — which would align with the theory of one more corrective wave before recovery.
SOPR and Short-Term Holder Data Point to Capitulation Already Occurring
On-chain metrics shared by CryptoQuant add a different perspective. SOPR readings for short-term holders — which measure whether wallets are selling at profit or loss — have plunged into territory typically associated with capitulation. Bitcoin’s prior major bottoms have aligned with similar deep SOPR resets, signaling surrender among fast-moving traders.
BTC – Short-term holders have surrendered, but..
“In the short term, a rebound is highly likely, but if we fall again and lose the $80,000 level, the probability of facing a much tougher period becomes significantly higher.” – By @DanCoinInvestor pic.twitter.com/VZ1M2MnvaO
— CryptoQuant.com (@cryptoquant_com) November 24, 2025
That suggests forced selling has largely taken place — not just from retail wallets, but from leveraged futures traders as well.
This coincides with data showing a steep collapse in Bitcoin open interest to 1.3 million BTC on November 23, the largest 30-day drop of the current cycle. Analysts interpret this as a broad deleveraging event that flushes out speculative positions and clears the way for more organic price discovery.
Where Bitcoin Goes Next Depends on $80,000
The situation now hinges on whether Bitcoin can defend the $80,000 region during volatility. Swissblock noted that market stress indicators — which spiked during last week’s crash — are already fading, supporting the view that capitulation may be behind us.
However, both quantitative metrics and chart-based signals point to a possible “secondary dip” scenario. A mild sell-off to test support — potentially to fill the CME gap — would not contradict a bullish recovery thesis; rather, if BTC holds above $80,000 during that dip, it would strongly reinforce the case for a macro bottom.
If $80,000 fails, analysts warn the downturn could extend sharply. If that level holds, history suggests momentum may snap back quickly.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
