Bitcoin (BTC) dropped back under $90,000 around the opening of Wall Street on Monday as selling pressure from the US resumed.
Key points:
Bitcoin continues to showcase volatility as US sellers push the price below $90,000.
Liquidations remain consistent as investors remain cautious amid unclear price movements.
Signs of buying the dip can be seen across exchanges over the last two weeks.
BTC price faces limitations as Wall Street opens
Data from Cointelegraph Markets Pro and TradingView indicated that BTC price action remained volatile as the traditional finance trading week began.
After surpassing $92,000 during the Asia session, BTC/USD quickly lost upward momentum, missing the chance to retest the yearly open at $93,500.
“This is precisely why you need to stay patient during a $BTC move. There was a strong move in some Altcoins today, but Bitcoin faced a severe rejection at a crucial resistance,” crypto trader and analyst Michaël van de Poppe commented in a post on X.
Van de Poppe expressed hopes for a higher low to form next, highlighting $86,000 as a significant level.
“And, what if that doesn’t occur?” he added regarding the anticipated higher low.
“Exactly, that’s the point where I’m considering a sweep of the lows and the need for $86K to hold, as it’s the last support level before testing the lows.”
Trading firm QCP Capital noted that liquidations throughout the volatility remained “relatively modest.”
“This indicates a significant drop in positioning as broader interest in crypto continues to wane, whether due to fatigue, caution, or simple indifference while traders await clearer direction,” it stated in its latest “Asia Color” market update.
24-hour cross-crypto liquidations reached $330 million at the time of this writing, according to monitoring resource CoinGlass.
“Migrating” BTC supply raises liquidity concerns
Meanwhile, business intelligence firm Strategy’s recent announcement of a new Bitcoin purchase nearing $1 billion did not significantly boost market confidence.
Related: Did BTC’s Santa rally begin at $89K? 5 things to know about Bitcoin this week
As reported by Cointelegraph, Strategy increased its BTC holdings by 10,624 BTC last week, with an average purchase price slightly above $90,000 per coin.
However, QCP noted that buyer interest for both Bitcoin and altcoins was noticeable across the larger exchange user base.
Over the past two weeks, it reported, more than 25,000 BTC exited exchange order books. Data from the onchain analytics platform Glassnode suggested that two-week exchange outflows were closer to 35,000 BTC.
“Bitcoin ETFs and corporate treasuries now possess more BTC than exchanges, marking a significant shift that indicates supply is moving to longer-term custody while tightening the available float,” Asia Color noted.
“ETH is exhibiting a similar trend, with exchange balances declining to decade lows. In this context, Sunday’s movements highlighted how limited market depth remains as year-end liquidity diminishes.”
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.
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.
