Bitcoin faced challenges in breaking through the $93,000 threshold amid fluctuating global financial markets, leading to insufficient volume from spot investors.

Key Highlights:

• Bitcoin’s struggle to surpass $93,000 has hindered a bullish trend reversal.
• The cryptocurrency may oscillate between $80,600 and $96,000 until a significant level is revisited.

Lack of Spot Buyers Diminishes Bullish Sentiment

The absence of robust spot buying and shallow order book depth has created obstacles for Bitcoin to breach the $93,000 mark. Although a concentrated accumulation area exists at $84,000 with over 400,000 BTC acquired, active purchasing pressure remains lacking.

Despite historical buying strength, many short-term holders are at a loss relative to their average entry of $104,600, contributing to a low-liquidity environment.

Recent analysis from CryptoQuant indicated that the “Bitcoin to Stablecoin Reserve Ratio” on Binance has dropped to its lowest since 2018, suggesting an influx of stablecoins ready to invest in BTC. Such findings historically precede significant market rallies.

While demand is subdued, this stablecoin reservoir hints at potential upward movement, albeit currently dormant.

Bitcoin May Experience Sideways Trend Before Upcoming FOMC

Currently, Bitcoin is caught between $96,000 and the on-chain cost base floor of $80,600-$84,000. Given the clusters of liquidity on both sides, a breakout in either direction could instigate sharp shifts in market dynamics.

In a favorable scenario, a re-test near $80,600-$84,000 could facilitate liquidity absorption, setting the stage for recovery. Conversely, failing to gather liquidity before retesting $93,000-$96,000 might result in re-entry from sellers, heightening the risk of further decline.

Anticipation of a period of sideways price action has increased ahead of the Federal Reserve meeting on December 9-10. Traders are likely to exercise caution rather than rush into unstable market movements.

This article does not constitute financial advice. It is crucial for readers to conduct their own research before making investment decisions.