VT 
The December narrative of Bitcoin has diverged from traditional safe-haven assets. Instead of benefiting from defensive demand, the cryptocurrency has been shaped by ETF redemptions, portfolio rebalancing, and tax-related selling. These outflows have weighed on sentiment, contrasting with the inflows seen earlier in the month.
Holiday trading conditions have amplified the impact. With global liquidity thinning as institutional desks wind down for Christmas, smaller orders have produced exaggerated moves. Its rebound in the Asian session reflects opportunistic buying in a thin market rather than broad-based institutional support.
Macro sentiment remains cautious. Fiscal debates in Washington and geopolitical tensions in the Middle East continue to weigh on risk appetite. Meanwhile, the stance taken by the Federal Reserve in December has kept traders uncertain about the timing of rate cuts, adding to volatility across risk assets. In this environment, Bitcoin has behaved more like a high-beta risk proxy, responding to liquidity shifts rather than acting as a defensive hedge.
BTC/USD Technical Outlook: Key Levels to Watch
Bitcoin is holding above $89,470 after bouncing from recent lows, but the broader picture shows a market wrestling with year-end pressures. Renewed buying interest pushed BTC/USD toward the $91,910 resistance zone.
- Support: $89,470 (preferred buy level)
- Resistance: $91,910, followed by $100,000
- Downside risk: A break below $88,270 would negate the bullish setup and suggest deeper retracement
- Bullish strategy: Buy at $89,470, targeting $91,910 and $100,000. Stops at $88,270.
- Bearish strategy: Avoid shorts while price holds above $88,270. Reassess only if a sustained break below occurs.
- Range play: Trade tactically within $89,470–$91,910 until a decisive breakout develops. Bias remains bullish while above $88,270.
Looking Ahead: Year-End Positioning
The resilience of Bitcoin above $89,470 reflects opportunistic buying, but the combination of ETF outflows and thin holiday liquidity suggests caution. A decisive break above $91,910 would confirm bullish continuation, while a slip below $88,270 could trigger corrective pressure.
Click here to open account and start trading.
