Bitcoin (BTC) Price: $90K Experiencing Another Sharp Rejection. Is It Time to Panic?

Summary:
Bitcoin's price faced yet another rejection at the critical $90,000 mark. This recent movement indicates a waning bullish momentum, with selling pressure breaking the recent upward progression.

Key Takeaways

Bitcoin has struggled to maintain its price above $90,000, showing signs of bearish momentum.
Recent attempts to break past this barrier have ended in sharp corrections, pushing prices down to about $86,800.
Analysts suggest the trading community's confidence is eroding due to these repeated failures to sustain upward price movements.
Market sentiment remains cautious, with only a small chance projected for Bitcoin to reach $95,000 before the end of the year.

Bitcoin continues to struggle at the pivotal $90,000 level, failing to establish a lasting presence above it. This pattern demonstrates that the bullish momentum in the market may be fading.

According to price data from Bitstamp, Bitcoin experienced an upward trend early during the Asian trading session, reaching a peak just above $90,200 around 05:00 UTC. However, this breakout was short-lived. By 09:30 UTC, the market faced increased selling pressure, leading to a swift downturn that wiped out much of the day’s earlier gains. As of the latest update, Bitcoin's trading price is near $86,800, reflecting a decline of approximately 3.8% from its highest point of the day.

The price chart exhibits a dramatic rejection, characterized by a succession of large red candles that engulfed the previous upward spike. This inability of buyers to support the $90,000 level has left many traders feeling disheartened. Analyst Connor Bates noted that the recent price actions are indicative of a market showing signs of exhaustion.

The month of December started with misleading strength. In the first week, Bitcoin managed to break through the $90,000 ceiling and briefly reached up to $93,000. Nevertheless, this breakout lacked strong support, failing to establish $90,000 as a solid foundation. Consequently, Bitcoin quickly corrected back below the $90,000 mark, trapping those who had purchased at the peak.

Less than a week later, buyers attempted to rally again, pushing prices toward the $93,000-$94,000 range. This attempt was met with even stronger selling pressures, leading to a "lower high" situation and a rapid price drop toward $86,000. On December 19, a weak recovery attempt saw Bitcoin momentarily reach just above the $90,000 level. Unlike previous upward movements, this attempt did not have the trading volume necessary to maintain a daily close above the mark, resulting in an immediate rejection.

At this point, it appears unlikely that bulls will overcome the current challenges. According to bettors on Polymarket, there is only a 4% probability that Bitcoin will reclaim the $95,000 level by the end of this year.

Bitcoin (BTC) Price: $90K Experiencing Another Sharp Rejection. Is It Time to Panic?