Bitcoin’s Price Strength Dwindles Amid Lackluster Spot Buyers: What Lies Ahead?

Bitcoin’s Price Strength Dwindles Amid Lackluster Spot Buyers: What Lies Ahead?

Despite a brief surge to approximately $93,300 last week, Bitcoin has struggled to maintain its price momentum and has subsequently dropped below $85,000. The lack of decisive buying activity and low market liquidity are significant factors contributing to this stagnation.

Key Takeaways:

Bitcoin's failure to maintain above $93,000 has negated the possibility of a bullish trend reversal.
Without renewed demand from spot buyers, Bitcoin's price could fluctuate between $80,600 and $96,000 until one of these levels is revisited.

Weak Spot Demand Stifles Bullish Sentiment

Bitcoin's struggle to push above the $93,000 mark is primarily attributed to thin spot liquidity and insufficient order-book depth. Around $84,000, there exists a substantial accumulation of more than 400,000 BTC, which serves as an on-chain support level. However, there has been a notable absence of active buying pressure in the range of $84,000 to $90,000. Many short-term holders are also currently facing losses, having entered the market with an average price of $104,600, which creates a scenario of low liquidity.

According to data from CryptoQuant, the “Bitcoin to Stablecoin Reserve Ratio” on Binance has hit its lowest point since 2018, indicating a considerable accumulation of stablecoins poised to purchase BTC. Historically, such an extreme ratio has often signaled the onset of significant price rallies.

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Binance Bitcoin/Stablecoin Reserve Ratio. Source: CryptoQuant/X

Although demand from spot buyers remains weak, the surplus of stablecoins suggests that the potential for a price surge is present but currently untapped.

Bitcoin's Sideways Movement Ahead of Upcoming FOMC

At present, Bitcoin finds itself in a tight range between $96,000 (the recent peak) and $80,600–$84,000 (the established on-chain cost-basis floor). The clustering of liquidity on both sides of this range means a breakout in either direction could instigate sharp price movements.

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Bitcoin one-day analysis. Source: Cointelegraph/TradingView

From a bullish perspective, a revisit to the lower range around $80,600–$84,000 might be beneficial. This scenario would allow Bitcoin to absorb liquidity on the downside, thereby solidifying a support base before any upward movement.

On the other hand, if Bitcoin attempts a quick retest of the $93,000–$96,000 range without first accumulating liquidity below, it may trigger a re-entry of sellers, leading to possible corrections in line with the existing downtrend.

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Liquidity remains distributed on either side of Bitcoin's range. Source: Hyblock Capital

Given the current landscape, a phase of sideways consolidation appears increasingly probable as traders await the forthcoming Federal Reserve (FOMC) meeting on December 9–10. Market participants are likely to remain cautious, monitoring any developments related to US interest rate policies rather than engaging in speculative trading during this period of uncertainty.

Cryptocurrencies, Bitcoin Price, Investments, Markets, Cryptocurrency Exchange, Binance, Price Analysis, Market Analysis
Related: BTC price dips under $84K as Bitcoin faces ‘critical’ week for 2025 projections.