Bitcoin Struggles To Break $90,000 As Christmas Trading Approaches

TLDR

• Bitcoin struggles to maintain momentum above $90,000, facing resistance and pullbacks during U.S. trading hours.
• Bitcoin futures open interest hits $60B, signaling increased market activity and potential for rapid unwinds.
• Bitcoin faces strong resistance at $90,000–$90,350, with support near $88,300–$88,500, forming higher lows.
• Macroeconomic uncertainty and the “Santa Claus rally” could influence Bitcoin’s price direction as the year ends.

Bitcoin briefly crossed the $90,000 mark during European and U.S. afternoon trading but struggled to hold above this level. After rising from $88,000 during Asian hours, the price retreated back to around $88,000 by the end of the U.S. session. As the Christmas trading period approaches, Bitcoin’s price continues to struggle, with investors uncertain about the broader macroeconomic environment.

Bitcoin Price Faces Resistance Above $90,000

Bitcoin’s price has struggled to maintain momentum above the $90,000 level, with a brief surge followed by a retreat. While Bitcoin gained ground during the Asian and European trading sessions, it faced selling pressure as U.S. traders returned to the market. The price has shown a pattern in recent weeks, gaining during earlier time zones but experiencing pullbacks once the U.S. market enters.

Despite the volatility, the market remains sensitive to price movements, especially given the increasing open interest in Bitcoin futures. Data from CoinGlass revealed that Bitcoin futures open interest reached $60 billion across major platforms like Binance, CME, and Bybit. This surge in leveraged positions indicates growing market activity, but it also increases the risk of rapid unwinds if momentum falters.

Bitcoin’s Technical Levels and Key Resistance Points

Bitcoin is currently facing strong resistance between $90,000 and $90,350, a zone that has consistently acted as a supply area. Price has been grinding just below this level, showing neither a strong rejection nor a clean break above it. Support is found near the $88,300–$88,500 range, and Bitcoin is forming higher lows, supported by an ascending trendline, indicating potential bullish momentum if the price can break through resistance.

If Bitcoin breaks above $90,350 and holds, it could trigger a move toward the next resistance zone between $91,000 and $92,000, where sell-side liquidity is concentrated. However, if Bitcoin fails to surpass this level and experiences rejection, it may test the rising trendline again, with a possible drop to support around $86,000–$85,000.

The market is currently in a consolidation phase, and the price action suggests that the outcome of this compression will determine Bitcoin’s next move. A sustained break above $90,350 could signal a shift in market sentiment and lead to further buying. On the other hand, failure to break this key resistance could reinforce the pattern of lower highs, resulting in further pullbacks.

Macroeconomic Factors and the Potential for a Year-End Rally

The U.S. macroeconomic environment remains a key influence on Bitcoin’s price. Investors are closely watching the Federal Reserve’s actions, as delays in inflation data have created uncertainty in the market. In addition, upcoming U.S. economic indicators, including GDP growth and consumer confidence, could provide insights into future market sentiment.

Despite this uncertainty, historical trends offer some hope for Bitcoin as the “Santa Claus rally” approaches. The S&P 500 often sees gains during the last five trading days of December, and Bitcoin has occasionally followed suit. However, Bitcoin’s performance during this period has been mixed, with some years seeing strong gains and others witnessing declines. The overall correlation with equities may provide some support if stocks experience a rally, but the cryptocurrency market’s unique characteristics could still lead to unpredictable results.

As Bitcoin continues to face resistance at key levels and the Christmas trading period nears, traders remain cautious. While a break above $90,000 could signal further upside, macroeconomic factors and market sentiment will play critical roles in determining Bitcoin’s trajectory. The next few weeks will likely offer clarity on whether Bitcoin can sustain its momentum or face further challenges.

The post Bitcoin Struggles To Break $90,000 As Christmas Trading Approaches appeared first on CoinCentral.