Bitcoin's Recovery Rally Built on Shaky Ground as BTC Slips Under $90K
Bitcoin experienced an approximate 15% rally over the past two weeks, primarily driven by short-covering rather than new bullish demand. During this rally, open interest initially declined but then rose nearly 4% since December 11 to 232,000 BTC, indicating increased speculation despite a continued lack of spot-buying demand.
As of December 15, 2025, Bitcoin traded around $89,860, about 5% below the December 9 high near $94,200. Over $1.80 billion of leveraged shorts are currently at risk of liquidation if Bitcoin surpasses $91,300, potentially triggering a short squeeze.
The 25-delta options skew improved from -11% to -5% during the rally, signaling improving sentiment and a potential bottom formation, as bearish bets are now opened less aggressively. Myriad, the parent company of Decrypt, assigns a 69% chance that Bitcoin will move to $100,000 rather than dropping to $69,000.
Analysts expect choppy year-end price action, noting that demand from spot buyers has remained absent since the October 10 leverage washout. They caution that a sustained move higher likely requires the resolution of both the lack of demand and lingering selling pressure.
