BitcoinBTC( ) tried closing above a crucial resistance zone last weekend after briefly spiked to approximately $93,300. BTC, however, failed to stop the mean-reversion, and its price dropped below $85,000 Monday.
Takeaways from the conference:
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Bitcoin’s failure to reach a closing price above $93,000 nullified the bullish trend.
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Bitcoin may range from $80,600 to $96,000 if there is no new demand for the spot price.
Bullish sentiment is tempered by the lack of buyers on spot
BTC’s current struggles to rise above $93,000 are primarily due to a lack of liquidity in certain areas and an order-book with a shallow depth. A dense cluster of cost-basis coins is located around $84,000. However, over 400,000 BTC purchased in this area have formed an effective onchain floor.
A lack of active demand between $84,000-$90,000 is a result of the strong accumulation in history. In the meantime, short-term owners are underwater compared with their entry average of $104,600. This puts the market in an area where liquidity is low.
CryptoQuant Data showed Binance “Bitcoin to Stablecoin Reserve Ratio” It has now dropped to its lowest point since 2018. It was a sign of a massive buildup in stablecoins that were ready to purchase BTC. A ratio of this extreme on the exchanges has historically preceded large rallies.
Stablecoin overhang is indicating that while spot demand may be weak, there are enough stablecoins to power a spike.
Related: BTC price analysis: Bitcoin could crash another 50%
Bitcoin is likely to remain flat ahead of next FOMC
Bitcoin is now trapped between $96,000 (the top of the recent range) and $80,600–$84,000 (onchain cost-basis floor). There are still clusters of liquidity on both sides, meaning that a break in either direction can trigger sharp movements.
From a bullish standpoint, a re-test of the lower band near $80,600–$84,000 might be constructive. This would enable BTC to absorb liquidity at the bottom, allowing it to build a base prior a recovery.
Conversely, an immediate retest of $93,000–$96,000 without first gathering liquidity below could backfire as sellers may re-enter, risking further correction in line with the broader downtrend.
Given the current backdrop, a period of sideways consolidation is increasingly likely ahead of the upcoming Federal Reserve (FOMC) meeting on Dec. 9–10. Traders could choose to remain inactive rather than chase volatility as markets are watching signals about US interest rate policy.
Related: BTC price dips under $84K as Bitcoin faces ‘pivotal’ week for 2025 candle
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Source: cointelegraph.com
