Bitcoin faced challenges in sustaining its recovery as the price neared the significant resistance level at $95,000 on Tuesday, coinciding with Wall Street’s opening.
Highlights:
- Bitcoin encounters substantial seller interest around $95,000.
- The price dynamics indicate weakness in relation to higher-risk assets and precious metals.
- The weekly support remains focused on the critical $93,500 for its closing.
Choppy Price Movement Amid $95K Demand
Data from TradingView indicated a loss of price momentum as BTC/USD reached $94,800, the highest point since November 17.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
“Choppy price action starting to show up in market data especially here,” trader Skew noted in his X analysis for the day.
Skew mentioned an entity selling at $94,000, indicating passive selling taking place consistently into rising prices.
“Longs realise the subtle cue around $94K the second time and bail from positioning only for late shorts to start positioning. Typically there’s a lot of decay on these days.”
BTC/USDT order-book data (Binance). Source: Skew/X
“Big boy sell wall at 95K on spot orderbooks; today could define if the price breaks through or declines from it,” Exitpump mentioned.
BTC liquidation heatmap. Source: CoinGlass
Marketwide trends saw US stocks ascend while gold prices surged to $4,491 per ounce, driven by developments in Venezuela. Silver was noted to have regained the $80 threshold.
In their latest report, QCP Capital shared insights in the “Asia Color” update regarding crypto re-aligning with major asset classes, hinting at a potential regime shift and a resurgence of bullish narratives for the upcoming year.
“While much of this narrative was likely already priced in, Washington’s Venezuela surprise could act as a near-term catalyst for BTC.”
Despite these developments, Bitcoin appears to struggle against gold’s recent upward momentum.
BTC/XAU one-hour chart. Source: Cointelegraph/TradingView
Analyst Perspective: Importance of $93,500 Close
Bringing a note of long-term optimism, trader and analyst Rekt Capital indicated that BTC/USD has preserved the lower boundary of a crucial range on weekly charts.
The upcoming weekly candle’s close needs to be above the range high of $93,500, marking the opening level for 2025.
“Generally, ~$93500 needs to hold as support for mid-term bullish bias.”
