Bitcoin (BTC) retraced to the mid-$80,000s on December 1, following a sharp decline that saw about $6,000 wiped off its value across major exchanges. This pullback has unsettled traders who are over-leveraged, yet analysts from Glassnode argue that it has established a robust accumulation zone for the cycle.

Late November’s Decline Forms Tight Cost-Basis Cluster Near $80K

According to Glassnode, Bitcoin’s plunge into the low-$80K territory in late November has created a new cost-basis cluster. The firm highlighted that this zone could function as an essential support area, as significant buying activity in this range is evident on their realized price heatmaps.

The conditions that created this setup led to a dramatic price change today. Previously, Bitcoin had fallen from above $91,000 to below $86,000 within hours, resulting in a loss of almost $200 billion in the total crypto market cap and dragging other major cryptocurrencies, like ETH, below $2,900.

Data from derivatives indicate that the price drop was largely due to forced selling rather than consistent selling pressure from spot traders. Order-flow analyst BorisD identified a staggering $250 million in net long liquidations on Binance. He noted that while long positions were liquidated, short positions remained intact and even increased.

In a related report, NovAnalytica flagged a significant $700 million decrease in open interest, indicating a long-heavy market position similar to previous capitulation events.

Diverging Opinions Among Traders

Market commentators on X have mixed feelings about the future trajectory of Bitcoin. Merlijn The Trader believes that 2025 mirrors the patterns of 2020, viewing the recent downturn as a necessary phase before a rebound and suggesting that any price below $90,000 is a favorable buying opportunity.

In contrast, Michaël van de Poppe suggests that while Bitcoin is poised to regain its foothold at $92,000 in the coming weeks, caution is warranted regarding market structure. Kyle Chassé expressed concerns about the potential breakdown of the ETF safety net, citing over 300,000 BTC sold by significant holders in the last three months and $2.7 billion outflows from ETFs in the past 60 days.

Current data shows BTC trading around $86,000, reflecting a 6% decrease on the day and a 22% decline over the past month.