Bitcoin Faces Strong Resistance Amid Supply Caps
Bitcoin’s price movements this December are marked by a challenging environment, with its ceiling tightening as loss-holders sell their holdings. Market indicators, coupled with external economic factors, suggest that the cryptocurrency’s upside is significantly constrained in the short term.
Spot Selling Takes Center Stage
While Bitcoin briefly surged by nearly 4.6% this week, climbing from $86,300 to over $90,200, the rally was short-lived. Spot selling quickly erased these gains, as highlighted by data from Velo. The market is witnessing sporadic bursts of activity rather than sustained upward demand.
Notably, the cumulative volume delta shows a decline in spot demand, with leveraged derivatives traders driving recent buying. However, this behavior leaves the market vulnerable, as a lack of foundational spot buying diminishes stability during low-liquidity periods, like the festive season.
Economic Uncertainty Amplifies Pressure
External economic factors, such as the Bank of Japan’s recent interest rate hike, are adding stress to the market. Experts warn that these traditional financial destabilizers could send ripples across the cryptocurrency sector, exacerbating bearish sentiment.
Analysts expect limited upward movement for Bitcoin as long as its price remains below key supply thresholds, such as the $95,000 quantile and the short-term holder breakeven of $101,500. Furthermore, with the market average acquisition cost hovering around $81,500, this level has so far absorbed selling pressure—but for how long?
What Lies Ahead for Bitcoin?
The holidays often create highly volatile, low-liquidity regimes, and Bitcoin seems poised to remain flat during this seasonal downturn. According to Ryan Yoon, senior analyst at Tiger Research, “It’s unlikely we’ll see a significant jump for Bitcoin before the end of 2025 given the current sentiment. However, favorable Consumer Price Index (CPI) data could prompt a short-term relief rally as markets react to inflationary signals.”
For those looking to capitalize on this transitional phase in Bitcoin’s journey, platforms like Coinbase offer newcomers and seasoned investors a user-friendly interface for secure crypto investments.
Conclusion
As we near the end of 2025, Bitcoin’s price remains constrained under significant sell-side pressure and external economic dynamics. While its potential remains immense, the cryptocurrency’s current state reflects the broader uncertainties of the financial market.
