Analysis: BTC's recent dip eased leverage, but buying pressure is key

According to an analysis by crypto media outlet Cointelegraph, Bitcoin's short-term price drop of approximately 3.7% on the morning of Jan. 19 led to the liquidation of $233 million in long positions. This event has eased overheated leverage risk in the market without breaking the overall market structure. While investor sentiment has cooled rapidly, on-chain and derivatives data suggest the move is more of a structural adjustment than a bearish reversal. The analysis notes that an influx of buying pressure from investors looking to buy the dip will be crucial to halting the decline. From a technical perspective, Cointelegraph pointed out that Bitcoin continues to make higher lows and higher highs on its daily chart. The $92,000 to $93,000 range aligns with a significant demand zone of concentrated buy orders and is also a test of the monthly volume-weighted average price support. Therefore, this price action is likely part of a process to establish a higher low before an attempt to reclaim the $100,000 level. Notably, approximately $250 million in net long positions were executed around the $92,000 mark on Jan. 19, which suggests that demand for dip-buying is outpacing panic selling.