Bitcoin Remains Below 90K Despite Several Attempts to Break Resistance Level

TLDR

Table of Contents

Bitcoin trades near 87K with daily volume around 52 billion during holiday sessions.
Open interest fell nearly 50% after record options expiry affecting market moves.
Key resistance levels stand at 91400 and 94K while support holds at 84K.
Global energy price spikes added short-term volatility but gains were erased in U.S. hours.

Bitcoin has continued to hover below the $90,000 level as the cryptocurrency faces persistent resistance, with repeated attempts to break through over the past month failing due to low trading volume and cautious market positioning. During the holiday trading period, thin liquidity contributed to sharp swings in price, but the lack of strong buying pressure prevented a sustained breakout, leaving traders uncertain about the next direction.

Thin Liquidity Keeps Bitcoin Below Key Resistance

The bitcoin price rose modestly during Asian trading hours but fell back quickly, unable to maintain levels near $90,000, reflecting weak participation in the market. Daily trading volume remained relatively low at around $52 billion, limiting momentum and preventing any decisive moves despite temporary gains.

Over the week, the price stayed above $86,000 but continued to struggle to hold above $90,000, showing that short-term rallies lack the support needed for a broader upward trend. Analysts noted that without sustained demand, these movements are unlikely to result in a long-term breakout.

Options Market Influences Price Movements

Recent activity in the options market has contributed to short-term price volatility, with a record expiry event causing a sharp decline in open interest, which fell nearly 50%, signaling that many traders had stepped aside.

QCP Capital noted that dealers who were previously long gamma ahead of the expiry are now positioned short gamma to the upside, meaning price increases force them to hedge through additional spot purchases or short-dated call options, which can amplify short-term moves.

Funding rates also climbed after the options expiry, reaching levels above 30%, reflecting crowded bullish positioning and raising the cost of holding long positions. According to QCP, elevated funding and the current options structure could trigger temporary upward movements, but without real volume, these gains may not hold.

Global Events Add Volatility

Bitcoin’s attempts to approach $90,000 coincided with rising global energy prices following attacks on infrastructure in Russia and Ukraine, which intensified market uncertainty and added to inflation concerns. While these developments briefly supported higher prices during Asian trading sessions, gains were erased during early U.S. trading hours as market participants reacted to geopolitical news.

Supporters of bitcoin continue to emphasize its role as a hedge against growing fiscal imbalances, noting that the U.S. national debt has now surpassed $37 trillion. However, these long-term considerations have not yet translated into significant short-term buying pressure, leaving the market range-bound.

Key Support and Resistance Levels

Technical analysts point to $84,000 as critical support, with the broader market showing signs of rejecting lower levels within a broadening wedge pattern. Resistance is now seen at $91,400 and $94,000, with a sustained move above $94,000 potentially opening the path toward $101,000 and $108,000.

Traders remain cautious as thin liquidity and year-end conditions continue to limit strong price action, and the market awaits further signals from large options expiries near the $100,000 level. At the time of writing, bitcoin was trading near $87,000, maintaining its one-month struggle to decisively surpass $90,000.