Bitcoin's Price Faces Resistance As Loss Holders Sell Amid Slow Demand
Bitcoin opened around $86,300 and surged about 4.6% to over $90,200 before retracing to near $86,600 during a period of low liquidity over the holidays.
The market showed a lack of sustained spot demand, with cumulative volume delta indicating only periodic bursts rather than continuous buying pressure.
The initial price spike was driven by derivatives activity, as rising open interest and positive delta in perpetual volume signaled leveraged-derivatives buying instead of spot accumulation.
The subsequent price drop resulted from spot selling, confirmed by a decline in the spot cumulative volume delta.
Glassnode highlighted a dense supply wall between $93,000 and $120,000, which contributes to a constrained upside unless the price can clear this range.
Bitcoin’s upside is capped while below the 0.75 quantile near $95,000 and failing to reclaim the short-term holder breakeven at around $101,500.
The true market mean, or average cost basis, for active Bitcoin holders is about $81,500, a level that has so far absorbed selling pressure.
Analysts expect a limited rally before year-end 2025 due to bearish sentiment, though favorable Consumer Price Index (CPI) data could trigger a short-term relief rally.
