Bitcoin fights for stability: Resistance instead of panic at $90,000

Bitcoin shows a struggle for stability in the current market phase, with the price repeatedly encountering resistance at the $90,000 mark. This price movement suggests more of a consolidation phase rather than a deeper bear market – an important signal for market participants expecting significant volatility.

Current Price Movements and On-Chain Data

Bitcoin is currently trading in the range of 87,000 to 88,000 $, indicating a limited trading range after repeated rejection at 90,000 $. On-chain metrics reveal a nuanced picture: short-term holders are under considerable pressure, with their average cost basis around 99,900 $ – a clear indication of unrealized losses.

The network’s realized price stands at 56,200 $, reflecting long-term holding positions. This discrepancy between short-term and long-term indicators suggests that a substantial market correction is unlikely.

Market Sentiment and Institutional Activity

Recent capital flows reveal an ambivalent market sentiment. Spot Bitcoin products experienced average outflows of 188.6 million $ over four consecutive trading days, indicating weakened institutional confidence. At the same time, long-term investors are holding their positions, while some new large-volume buyers became active near prices of 84,000 $.

The monthly price decline of 22.54 % demonstrates ongoing weakness. This Q4 performance marks the weakest closing phase in the past seven years – a context that has historical parallels to the market dynamics of 2018.

Market Analysis and Outlook

Analysts are currently observing a picture of indecision. The consolidation around the 88,000-$ region signals a lack of consensus on the short-term direction. Industry observers associate this development with macroeconomic factors such as interest rate expectations, which put pressure on the risk segment.

Long-term, regulatory clarity and technological advancements could provide new impulses. However, the current state should be interpreted as a consolidation phase – neither as a signal for panic nor a clear buy signal, but as a market recalibration phase under changed economic conditions.