The price of bitcoin briefly crossed the $90,000 mark early Monday, rising from $88,000 during Asian trading hours to just over $90,000 in afternoon trading in Europe and the United States.
The rise did not last long as the price of bitcoin fell to around $88,000 by late afternoon.
BTC has shown a pattern in recent weeks of gaining momentum during Asian and European trading hours, only to see those gains fade once US investors re-enter the market.
Data from CoinGlass shows that bitcoin futures open interest rose earlier in the day to $60 billion on major trading venues including Binance, CME and Bybit. The rise suggests that new leveraged positions, rather than mere short coverings, are entering the market.
Rising open interest coupled with higher prices does not necessarily indicate immediate problems. But it increases the stakes. If momentum stops, crowded long positions could quickly unwind, triggering sharp pullbacks.
Conversely, if the rally sustains, leverage could amplify the upside potential.
A sustained move and hold above $90,000 could signal a move away from the pattern of heavy early selloffs that has characterized much of December. A sustained hold above this level would suggest bullish momentum, while failure to do so may indicate a continuation of the market’s trend towards lower highs and rapid pullbacks.
Bitcoin Price Technical Levels
Support for bitcoin price remains near $84,000, a level that has proven resilient in recent weeks. Immediate resistance lies at $91,400, with the next key level at $94,000. Beyond $94,000, analysts point to $98,000 and an area between $101,000 and $108,000 as strong resistance.
Closing above $108,000 could challenge assumptions that bitcoin’s price peak in 2025 marks a long-term high, according to analysis by Bitcoin Magazine.
Despite the rally, the US macroeconomic environment remains a key influence on bitcoin’s price trajectory. The Federal Reserve’s policy path is uncertain, in part due to delays in key inflation data caused by the recent government shutdown.
Gabriel Selby, head of research at CF Benchmark, said DLNews That until the Federal Reserve receives several months of uninterrupted inflation readings, market participants are unlikely to fully commit to risk assets like bitcoin.
Investors are also keeping an eye on upcoming US economic indicators. GDP figures for the third quarter will be released tomorrow, and forecasts point to annualized growth of about 3.5%, slightly below the second quarter’s 3.8% pace. Consumer confidence data and weekly jobless claims will provide additional information on the labor market, which could influence risk appetite.
Possible ‘Santa Claus Rally’
Historical seasonality offers some reasons for optimism. The S&P 500 has often risen during the last five trading days of December and the first two days of January, a pattern known as the “Santa Claus rally.” BTC’s correlation with stocks through ETFs means that a festive boost in stocks could spill over into the cryptocurrency market.
Historically, Bitcoin’s performance in the Santa Claus period has been mixed. Strong returns of 33% and 46%, respectively, were recorded in 2011 and 2016, while declines were recorded in other years. Overall, BTC has averaged a gain of about 7.9% over the period since 2011.
Gold has been a more consistent performer, generating a cumulative return of 95% over the same window, and its recent all-time highs above $4,400 an ounce should strengthen sentiment.
Bitcoin Price Outlook
For now, sellers remain in control near $89,000, about 30% below bitcoin’s October all-time high. Investors withdrew nearly $500 million from bitcoin ETFs in cash last week, signaling caution amid macroeconomic uncertainty.
However, according to data from Bitcoin Magazine, if the bulls hold support above $84,000 and manage to sustain gains above $90,000 during US time, they can create a foundation for a year-end rally.
The interplay between spot demand, futures leverage and macroeconomic signals will likely determine whether bitcoin price can maintain its momentum towards the key $94,000 and $101,000 levels in the final weeks of 2025.
BTC was trading at $88,368 at the time of publication, with a 24-hour trading volume of $40 billion. The cryptocurrency’s market capitalization stood at approximately $1.76 trillion, with 19.97 million coins in circulation and a maximum supply capped at 21 million.
