Bitcoin's Price Ceiling Tightens as Loss-Holders Sell
Bitcoin faces limited upside due to heavy supply from investors holding losses, creating resistance ahead of the holiday period. The market lacks strong spot buying and shows defensive positions in derivatives, indicating fragility and low liquidity as Christmas approaches. On Wednesday, Bitcoin briefly surged above $90,200 but quickly retraced to around $86,600, with volatile moves amplified by holiday trading conditions. The price spike was driven mainly by leveraged derivatives traders rather than spot buyers; the subsequent drop was pushed by spot selling. Resistance exists between $93,000 and $120,000, and substantial upward movement is unlikely unless Bitcoin moves above $95,000 and the key short-term holder breakeven at $101,500. Support has held near $81,500, the average active investor cost, but its durability is uncertain. Significant bullish moves are seen as unlikely before late 2025 unless favorable inflation data triggers a short-term relief rally.
