Bitcoin (BTC) remained lower as Tuesday’s Wall Street session began, with traders anticipating further declines in BTC prices.
Key points:
Traders are increasing short positions on Bitcoin ahead of Wall Street’s opening as Bitcoin and precious metals diverge in their trends.
The moving averages are acting as strong resistance as the price struggles to surpass $90,000.
Bitcoin is beginning to show bullish divergences against both the US dollar and gold.
BTC Price Movement Encourages Buyers to Enter
Data from TradingView indicated that BTC/USD was trading down about 1% for the day.
After failing to break the $90,000 barrier the previous day, market expectations were low for the pair, which lingered while gold and silver reached new all-time highs.
“$BTC continues to reject at its 4H 200MA/EMA trend,” trader Daan Crypto Trades remarked in his latest analysis on X.
“For this to break out of the current choppy range, this level must be overcome on the upside.”
Daan Crypto Trades referred to the 200-period simple (SMA) and exponential (EMA) moving average “cloud” on four-hour charts.
Another trader, Crypto Tony, decided to hold off until new intraday lows appear for a potential long entry.
I’m waiting for a move down to $86,800 for a possible long entry.
The next few days may be tricky, but I’m set to catch significant moves like yesterday pic.twitter.com/vNuNkhEdpv
— Crypto Tony (@CryptoTony__) December 23, 2025
“$BTC is now hovering around the $88,000 level. Any attempt towards the $90,000 mark has encountered substantial selling pressure,” crypto analyst Ted Pillows confirmed.
“Until Bitcoin reclaims this level, the sideways movement will persist.”
A whale has initiated a $166,822,000 $BTC short position.
Additionally, they opened $54,856,000 $ETH and $18,790,000 $SOL short positions. pic.twitter.com/LPd7Iu3EmU
— Ted (@TedPillows) December 23, 2025
Pillows mentioned that a whale has established short positions in Bitcoin, Ether (ETH), and Solana (SOL) amounting to nearly $250 million.
Bitcoin Chart Indicates Potential for Gold Recovery
Related: $90K BTC vs. Record Gold Price: Key Insights on Bitcoin This Week
In this scenario, Bitcoin’s relative strength index (RSI) has been making higher lows, while its price has recorded lower lows.
“I’m pretty confident that the bottom has formed – and $BTC will soon rebound into million-dollar brackets,” trader Jelle commented.
Pillows noted that the last two occurrences of three-day bullish divergences led to BTC/USD hitting a bottom.
As gold nears $4,500 per ounce, the daily BTC/XAU chart also revealed a bullish divergence forming at crucial support levels.
“Gold has surged to new all-time highs, while BTC has stubbornly remained in a range as we approach the Christmas week,” trading firm QCP Capital summarized in its latest “US Color” market update for the day.
“Liquidity is rapidly diminishing as traders close out their positions ahead of the holidays.”
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
