Bitcoin began the week on the defensive in Asian markets, falling about 3% to around $92,500 as momentum from a derivatives-led rally faded.

The pullback underscores the market’s fragile footing, even as signs emerge that the heavy selling pressure seen late in 2025 is starting to ease. Bitcoin has retreated from a recent advance toward the mid-$90,000 range, with liquidation data suggesting bullish positioning had become crowded. CoinGlass data showed more than $680 million in crypto positions were liquidated over the past 24 hours, with nearly $600 million coming from long positions.

Altcoins were hit harder during Monday’s Asia session. Solana slid 6.7%, Sui dropped 10%, and Zcash fell 10%. Beyond crypto, gold extended its rally, rising 1.7% to $4,600 after the U.S. imposed a new 10% tariff on Denmark and seven other European countries, set to remain in place until “a deal is reached for the complete and total purchase of Greenland.”

According to Glassnode’s weekly report, bitcoin’s recent push toward $96,000 was largely “mechanical,” driven by derivatives activity such as short liquidations rather than sustained spot accumulation. The on-chain analytics firm warned that futures market liquidity remains relatively thin, leaving prices vulnerable to sharp reversals once forced buying pressure dissipates.

Glassnode also highlighted a dense supply zone created by long-term holders who accumulated near previous cycle highs, a level that has repeatedly capped recent rebounds.

CryptoQuant offered a more cautious assessment, describing the move since late November as a potential bear-market rally rather than the start of a new uptrend. Bitcoin continues to trade below its 365-day moving average near $101,000, which the firm described as a key “regime boundary.” While demand conditions have improved at the margin, CryptoQuant said broader fundamentals remain weak, with apparent spot demand still contracting and U.S. spot ETF inflows remaining modest.

There are, however, tentative signs of stabilization. Glassnode noted that long-term holder distribution has slowed significantly compared with late 2025, while spot flows on major exchanges such as Binance have tilted more toward buyers. Selling pressure led by Coinbase has also eased.

Options markets continue to signal caution. Implied volatility remains subdued, but downside protection is still priced into longer-dated contracts, indicating investors remain defensive.

Until sustained spot demand re-emerges, analysts warn that bitcoin is likely to remain sensitive to shifts in leverage and liquidity, leaving markets vulnerable to further volatility.