Bitcoin Price Technical Analysis: BTC resistance and support

In today’s bitcoin technical analysis, we will explore the current BTC resistance and support, bitcoin bulls are beginning to have reservations as the seemingly inevitable rise toward a record bitcoin price of $100,000 loses steam.

Institutional Buying Persists Amidst Shifting Capital Flows in Crypto Market

“While strong institutional buying pressure persists, particularly from MicroStrategy's ongoing accumulation strategy, the broader crypto ecosystem is witnessing a diversification of capital flows from both institutional and retail investors,” said Chris Newhouse, director of research at Cumberland Labs.

As Bitcoin price stabilizes, interest is growing in other digital assets like Ether and XRP, which have previously lagged behind Bitcoin during its record price surge following President-elect Donald Trump's victory. The former president has emerged as a crypto supporter, raising hopes for more favorable U.S. regulation of this often-controversial asset class.

According to Bloomberg data, bitcoin price and Ether exchange-traded funds (ETFs) each recorded unprecedented monthly net inflows in November, amounting to $6.5 billion and $1.1 billion, respectively. Additionally, Ether ETF subscriptions reached an all-time high on Friday.

“After six weeks of positive inflows, we’ve experienced a week of sales, and derivative traders are using ETF demand as a macro indicator for direction,” said Fadi Aboualfa, head of research at Copper Technologies Ltd., in a message on Monday. “Early Bitcoin ETF investors may be looking to rebalance their portfolios, having seen their investments more than double.”

Options Market Update

The crypto options market has shown increased demand for downside protection in Bitcoin for later expirations this month, while Bitcoin futures have experienced moderate leverage, remaining subdued after the digital asset approached $99,000, according to Coinglass data.

“On-chain data indicates that medium-term traders (those who purchased between $55,000 and $70,000) are actively realizing profits, particularly as bitcoin price trades above $90,000,” said Vetle Lunde, head of research at digital asset firm K33, referencing data from The Bitcoin Lab. He noted that this metric estimates on-chain Bitcoin movements based on price at their last transaction, and it is unusual to see such concentrated activity within a single price range, suggesting heightened engagement at current levels.

Open interest for both Bitcoin options and futures contracts has remained relatively low following significant liquidations during Bitcoin's recent rally.

“The market has paused over the last 10 days as bitcoin price hovers just below $100,000. Volatility has slightly compressed to the 64th percentile, while Ether remains significantly higher at the 81st percentile,” commented Jake Ostrovskis, an OTC trader at Wintermute.

Adding to market concerns on Monday, blockchain analysis firm Arkham reported on X that approximately $2 billion worth of Bitcoin, forfeited from the former Silk Road website, was transferred from U.S. government wallets to the bitcoin price exchange. Such movements often lead to price declines as traders speculate about potential large sell-offs.

As of 9:33 a.m. Tuesday in Singapore, bitcoin price was stable at $95,734, having reached a record high of $99,728 on November 22.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.