DECEMBER KICKS OFF "RED FLAME": LIQUIDATION TRIGGER OR MAJOR RISK SIGNAL?
At the very beginning of December, the market saw a rapid decline from the 91,000 range down to 87,000 in just a few hours, wiping out a significant amount of leverage in the market. Liquidation data indicates that over $530 million in positions were liquidated within 24 hours, predominantly long – a clear sign of an active "liquidation trigger."
The liquidity map shows a large liquidity cluster concentrated around the 92,000–94,000 range above, while the 85,000–86,000 range is playing a short-term support role. With too many borrowing orders still in the market, pulling prices down to "clear the order book" is a very familiar scenario.
Notably, this selling pressure did not accompany a significant on-chain panic or a strong outflow from ETFs – this suggests that it may be more of a technical adjustment rather than a trend reversal.
Short-term scenario:
Staying above 86,000–87,000 → potential to bounce back and test 92,000–94,000.
Falling below 86,000 → risk of extending down to 82,000–84,000.
December often experiences high volatility due to year-end profit-taking and cash flow rebalancing. High volatility will continue, but there is not enough data to conclude a "crash."
