Bitcoin Faces Resistance At $93,700 As Breakout To $108,500 Stalls

TLDR

Table of Contents

Bitcoin’s $93,700 resistance blocks breakout attempts toward $108,500.
Whale caution has weakened momentum, as large holders reduce BTC positions.
A $3.66 billion short squeeze setup could trigger Bitcoin’s rally past key levels.
Bitcoin’s inverse head and shoulders pattern remains intact as long as it stays above $83,800.

Bitcoin’s price has been hovering near $92,500, struggling to break above the key resistance at $93,700. The cryptocurrency’s price has shown a promising inverse head and shoulders pattern, which indicates a potential rise to $108,500. However, the price continues to face resistance, preventing a full breakout. The failure of each breakout attempt can be attributed to two main factors: the persistent $93,700 resistance level and reduced support from large holders (whales), who have been decreasing their Bitcoin holdings since November 19.

Resistance at $93,700 Continues to Block Bitcoin’s Rally

Bitcoin’s price has repeatedly attempted to break the $93,700 neckline, which is critical for activating the inverse head and shoulders pattern. However, every effort has failed so far, causing frustration for traders expecting a surge. Until Bitcoin closes above $93,700, the pattern cannot fully trigger. This resistance level acts as a strong barrier to upward momentum.

Traders are closely monitoring this zone as it represents a key turning point. A successful daily close above $93,700 could signal the start of a breakout. Once the price breaks past this level, Bitcoin could push towards $94,600, then head toward $105,200, and eventually hit the $108,500 target. Until that happens, Bitcoin remains stalled at this crucial resistance level.

Whale Caution Weakens Bitcoin’s Momentum

Another factor contributing to the lack of breakout is the caution among Bitcoin whales, or large holders. Since November 19, entities holding more than 1,000 BTC have been reducing their positions. This decline in whale activity has resulted in weaker momentum for Bitcoin’s price, especially during attempts to break through resistance levels.

On December 3, for example, Bitcoin briefly touched $93,400, only to see a decline shortly after as whale holdings fell from 1,316 to 1,303. The absence of strong support from whales, who typically provide the buying power to push through significant resistance levels, has caused momentum to fade after price increases. This hesitation from large holders continues to weigh heavily on Bitcoin’s ability to maintain upward momentum.

Short Squeeze Setup Could Trigger a Breakout

Despite these challenges, there is a potential solution in the form of a short squeeze setup. On Binance, short liquidation leverage currently sits at $3.66 billion, compared to $2.22 billion on the long side. This imbalance suggests that if Bitcoin manages to surpass the $93,700 resistance, a significant short squeeze could take place, forcing liquidations and driving the price higher.

Such squeezes have already resulted in strong rallies this month, with Bitcoin experiencing brief but notable price movements as short positions were liquidated. If Bitcoin can manage a clean break above $93,700, the squeeze could provide enough momentum to surpass the $94,600 level and push the price toward $105,200 and eventually $108,500. This would take Bitcoin closer to its full measured target, offering traders a potential 15.7% gain from the current price.

The Path Forward for Bitcoin’s Breakout

Despite the current obstacles, Bitcoin’s breakout potential remains intact. As long as the price remains above $83,800, the inverse head and shoulders pattern continues to suggest an upward move toward $108,500. A drop below $80,500 would invalidate this bullish structure and increase the risk of a deeper correction.

For now, the focus is on overcoming the $93,700 resistance and the hesitation among whales. However, the possibility of a short squeeze offers a potential catalyst for Bitcoin to break free of these constraints and push toward its target. Traders and investors alike will be watching closely for signs of a breakout as Bitcoin navigates these key levels.