Bitcoin price hovered below $90,000 near $80,000 today as traders made another late push to recoup year-end losses amid thin holiday trading, but the market again lacked the conviction needed for a sustained breakout.
At the time of writing, the Bitcoin price stood at $88,063, up about 1% over the past 24 hours, according to market data. Trading volume was around $40 billion, reflecting muted participation as December draws to a close.
Bitcoin is now about 1% below its seven-day high of $89,201 and about 1% above its seven-day low of $86,855.
The world’s largest cryptocurrency has a circulating supply of 19,969,296 BTC, with a hard cap of 21 million coins. Bitcoin’s total market capitalization is approximately $1.76 trillion, up 1% from a day earlier.
Bitcoin pushed towards the $90,000 level yesterday for a second session in a row before the rally stalled again. Price action remains confined to a broad range between around $85,000 and $95,000, a structure that has defined the market since a sharp sell-off in October.
This downturn followed Bitcoin’s all-time high in early October, when prices rose nearly 30% year-to-date.
Since then, the mood has changed. Bitcoin price is now down about 5% from last December, putting it on track for its first annual loss in three years.
“I would continue to expect excessive moves on light flux through the New Year,” Jasper De Maere, desk strategist at Wintermute, said in a note to Bloomberg. He cautioned traders against relying too heavily on short-term signals until liquidity returns to normal levels.
The recent price stagnation contrasts with the broader recovery in traditional risk assets. Bitcoin began the year with a strong rally fueled by optimism surrounding crypto-friendly policies under the second Trump administration.
That enthusiasm faded as uncertainty surrounding President Donald Trump’s tariff agenda rattled global markets.
Bitcoin price battle with leveraged traders
While US stocks have largely bounced back from these shocks, Bitcoin has struggled to regain momentum. The October slump was exacerbated by a wave of liquidations after leveraged positions reached record levels. On October 10, a sharp selloff washed out long exposure and reset market positioning.
Demand for spot Bitcoin exchange-traded funds has also weakened. According to data from Bloomberg, ETF outflows have reached about $6 billion in the fourth quarter, adding constant pressure as Bitcoin failed to regain the $90,000 threshold.
Holiday trading conditions have further distorted the price action. Earlier this week, the bitcoin price fluctuated sharply around $90,000 during low-liquidity sessions, causing rapid gains and losses that lacked follow-through.
Prices briefly rallied around 2.6% during thin trading and held above $86,000 during the week, but again failed to sustain levels above $90,000 in Asian hours.
QCP Capital said the recent moves reflect a market lack of participation. In a note, the firm pointed to a steep drop in derivatives activity after last Friday’s record options expiration. Open interest fell by almost 50%, signaling that many traders moved to the sidelines.
Option expirations also changed short-term market dynamics. According to QCP, traders who were long gamma prior to the event are now short gamma on the upside. Under such conditions, rising prices can force hedging activity that reinforces short-term moves, especially when liquidity is thin.
A similar setup emerged earlier this month when the bitcoin price briefly approached $90,000. Funding rates rose quickly as traders crowded into bullish positions, creating short-term upward pressure.
Deribit’s perpetual funding rate rose over 30% after the latest expiration, up from an almost unchanged level beforehand. Elevated fund yields often indicate overheated positioning and increase the cost of maintaining long exposure.
From a technical perspective, Bitcoin Magazine analysts said the market continues to reject lower levels within an expanding wedge pattern, suggesting that downward momentum is weakening. Key resistance is at $91,400 and $94,000. A weekly close above $94,000 could open a path towards $101,000 and $108,000, although resistance remains high.
On the downside, $84,000 remains critical support. A break below this level could send the bitcoin price towards $72,000 to $68,000.