Analyst: Bitcoin's repeated tests of previous lows may be flushing out leveraged longs ahead of an eventual upward breakout.

Analyst KillaXBT noted that while Bitcoin’s short-term price has remained choppy, recent price action has repeatedly broken below previous lows, triggering long stop-losses and liquidations, indicating the market’s primary target has consistently been to flush out longs. In their view, repeated sweeps of the lows help reduce market leverage while gradually eroding investor long conviction, conditioning traders to expect that “a break below previous lows will lead to further downside.” In this scenario, a final downward sweep could instead mark a local bottom, after which prices resume advancing toward earlier highs. Nevertheless, this perspective is rooted in trading structure analysis rather than a definitive price forecast.