Bitcoin’s price remains constrained as it trades within a liquidity gap during the transition into the New Year. Despite efforts by bulls to maintain the price above critical levels, resistance remains at intra-day highs, reflecting ongoing selling pressure. After dipping to $91,500 on December 30, Bitcoin’s price was buoyed by buyers attempting to hold it above a head-and-shoulders pattern’s neckline on the daily chart. Analysts stress the need for Bitcoin to sustain levels above $94,000 to remain in its current $92,000 to $100,000 trading range. A rally attempted to push the price to $96,250 on December 31, underscoring this effort.
Technical analyst Aksel Kibar highlighted that a climb above $100,000 would invalidate the bearish pattern, yet sellers continue to dominate the market. Data reveals that today’s price increase was mainly driven by futures markets rather than spot trading, with sellers capping gains and buyers supporting dips in the $91,000 to $93,000 range.
Renowned trader Skew described the market as being “stuck in a void between liquidity,” suggesting traders monitor the balance of bid and ask orders as liquidity gaps persist between $91,000 to $85,000 on the buy side, and $98,000 to $100,000 on the sell side. For a bullish turn, Bitcoin would ideally close above $94,500, moving toward the next resistance level at $98,800. Nonetheless, the market remains volatile and driven by taker demand, prompting traders to stay vigilant for potential shifts in liquidity in the coming days.
