3 Reasons Bitcoin Price Can’t Break $90K Resistance Now.

Bitcoin’s Struggle Against $90K Resistance.

As the week winds down, Bitcoin continues to grapple with the $88,000 resistance, raising doubts about its ability to retest the $90,000 mark before Q1 ends. Analysts highlight persistent sell-side pressure from short-term holders and a contraction in liquidity as key factors stifling price movement.

Background and Context.

The current struggle of Bitcoin to break the critical $90,000 resistance level signifies a pivotal moment in cryptocurrency’s history. Historical trends reveal that major resistance levels often dictate market behavior, creating a cycle of fear and uncertainty among investors. Bitcoin’s price resistance analysis has become essential, especially as we witness similarities to past market corrections. In 2017, for instance, Bitcoin faced challenges at $20,000, ultimately collapsing before reaching new heights.

In recent contexts, trading volume and liquidity have dwindled significantly, making resilience against sell-off pressures increasingly challenging. On-chain data indicates that many short-term holders are grappling with losses following Bitcoin’s recent highs of $108,000. Additionally, a lack of new investor demand is evident as macroeconomic factors discourage entry into the market.

As a result, understanding Bitcoin price resistance analysis is crucial for anticipating market movements. Analysts suggest that prolonged accumulation phases might eventually lead to an uptrend, but the current indicators show a reluctance for upward momentum without sufficient buyer interest. The dynamics at play not only reflect individual investor sentiment but also broader market health and outlook.

3 Reasons Why Bitcoin Price Can’t Take Out the $90K Resistance Level.

As the week draws to a close, Bitcoin price resistance analysis suggests that the cryptocurrency has struggled to breach the $88,000 resistance level, significantly diminishing its chances of retesting the psychological $90,000 mark before the end of Q1. According to Glassnode’s report, a substantial sell-side pressure from short-term holders (STHs)—those holding Bitcoin for less than 155 days—remains a crucial challenge for the market.

Market Dynamics and Supply Pressure.

Data indicates that the current Bitcoin cycle has a “top heavy” market, with investors who bought BTC at higher prices controlling a major portion of the supply. As a result, STHs represent the group facing the largest price drawdown since Bitcoin’s correction from its all-time high. The Bitcoin accumulation trend score has consistently remained below 0.1, indicating strong selling pressure.

Liquidity Contraction.

In addition to sell-side pressure, liquidity conditions are tightening. Onchain transfer volumes have reduced to $5.2 billion daily—a staggering 47% drop from the peak during the rally to all-time highs. Concurrently, the number of active addresses plummeted by 18%, from 950,000 in November 2024 to just 780,000. Furthermore, the open interest in the BTC futures market has decreased by 24%, indicating a liquidity crunch that makes it challenging for Bitcoin to conquer the $90,000 level.

Lack of New Demand.

The absence of new buyers entering the market significantly impacts Bitcoin’s price movement, as highlighted by the Cost Basis Distribution (CBD) Heatmap. The heatmap shows a concentration of supply at higher price levels, yet lacks new entry points for buyers at lower prices. This situation is exacerbated by ongoing macroeconomic uncertainties, leading to net capital outflows among investors. Ultimately, prolonged accumulation phases could hinder price recovery until a stronger market trend materializes.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Understanding Bitcoin Price Resistance Analysis.

The recent news surrounding Bitcoin highlights critical dynamics affecting the cryptocurrency’s ability to surpass the $90,000 resistance level. This Bitcoin price resistance analysis underscores the significant sell-side pressure exerted by short-term holders, who have largely contributed to the sustained price drawdown since the peak at $108,000. With a concerning accumulation trend score below 0.1, market participants are witnessing a predominance of selling rather than buying, reflecting a broader reluctance among investors to re-enter the market.

Additionally, liquidity contraction is further complicating the scenario, with daily on-chain transfer volumes plummeting by 47%. Such a significant decrease, alongside an 18% drop in active addresses, signals reduced market engagement and tightening liquidity. Collectively, these factors illustrate a market grappling with structural challenges, including a lack of new demand and macroeconomic uncertainties, which may inhibit any efforts for Bitcoin to breach the pivotal $90,000 threshold in the foreseeable future.