Bitcoin jumps near $94,000 after extreme deleveraging clears path for sustained rally, analysts say

Bitcoin surged nearly 8% on Wednesday, briefly approaching $94,000 as analysts pointed to signs that a local bottom may be forming after weeks of steep declines.

Bitfinex said in a report Tuesday that extreme deleveraging, short-term holder capitulation, and emerging seller fatigue have created conditions for a sustained rally. The assessment came just hours before Bitcoin’s sharp Wednesday jump, which brought the cryptocurrency to $91,440 at press time, according to CoinMarketCap.

Market now running on a “leaner leverage base,” boosting the Bitcoin price rebound outlook

Bitfinex analysts noted that Bitcoin is now operating on a “leaner leverage base,” lowering the risk of sudden liquidation cascades that could interrupt the current Bitcoin price rebound. Roughly $19 billion in leverage was flushed out on Oct. 10, triggering sharp market losses that pushed Bitcoin as low as $82,000 on Nov. 21.

“This configuration strengthens the case that the market’s remaining leverage is relatively well contained,”

the report said, adding that this environment supports a more stable consolidation phase and improves the overall prospects for a Bitcoin price rebound.

The late year pullback followed by renewed upward momentum has also prompted some analysts to question the relevance of the traditional four year cycle, which would have placed the cycle peak near October’s all time highs of $125,100. This perception shift adds further nuance to expectations for any ongoing Bitcoin price rebound.

“This cycle is not like past cycles,” analysts argue as Bitcoin price rebound theories gain traction

Although December has historically been a quieter month with an average return of 4.69% since 2013, according to CoinGlass recent price action has diverged from seasonal trends. November, typically Bitcoin’s strongest month, saw a surprising 17.67% decline. For some analysts, this strengthens the case that the current Bitcoin price rebound is part of an atypical market cycle.

Analyst PlanC argued on X that “this Bitcoin cycle is NOT like past cycles,” suggesting that the forces driving the Bitcoin price rebound differ from historical patterns. Meanwhile, analyst Quinten Francois posted that “Bitcoin is closer to the bottom than the top,” reinforcing confidence in further Bitcoin price rebound potential.

Adding to that optimism, BitMine chair Tom Lee recently reiterated his belief that Bitcoin can still reclaim $100,000 before year end a target supported in part by ongoing Bitcoin price rebound momentum.

As analysts evaluate structural shifts in market behavior, leverage conditions, and investor sentiment many agree that the current Bitcoin price rebound may extend into the coming months.