The Bitcoin market has experienced a significant downturn from its $126K all-time high, dropping to $80K due to extensive liquidation cascades on centralized exchanges, wiping out billions in leveraged positions. This sell-off forced emotional decisions from spot holders, evidenced by realized losses surging to FTX crash levels in 2022, primarily driven by short-term holders. Large deposits of 100 BTC or more contributed to exchange inflows, pushing the average BTC deposit to 1.23 BTC in November 2025. The market briefly consolidated in an $81K-$89K range with thinning liquidity and elevated realized losses. However, the subsequent rebound saw Bitcoin whales initiating accumulation for the first time since August, with entities holding 10 to 10,000 BTC accumulating over 47,500 BTC in December 2025. This activity contrasts with earlier distribution of 113,000 BTC from October to November. Exchange supply has reached a 5-year low since January 2021, with over 23,000 BTC withdrawn in a 7-day period in early December 2025, indicating a shift into longer-term custody. The Binance Bitcoin/Stablecoin Reserve Ratio has dropped to its lowest since 2018, signaling substantial stablecoin liquidity poised for deployment. Despite these bullish indicators, on-chain activity remains soft, buyer participation is low, and the market structure mirrors early 2022's stress. The Fear and Greed Index remains in 'fear' territory (24/100). The market is in a fragile phase, aiming for a key recovery zone of $96K-$106K, needing to regain the short-term holder cost basis above $100K for comfort, before sustained upward momentum can be expected.