Bitcoin’s price remained stable near $88,000 today, closing with a slight increase of about 1% after falling below the $90,000 mark. Limited investor participation due to reduced trading volume during the holiday period has hindered the year-end rally. Bitcoin’s total market capitalization stands at approximately $1.76 trillion, with around 19.97 million coins in circulation out of a maximum supply of 21 million bitcoins. Recently, Bitcoin attempted to break the $90,000 level but failed, resulting in prices fluctuating within a broad range of $85,000 to $95,000. In October, Bitcoin experienced a sudden price drop of nearly 30% from its record high earlier in the year. Since then, the market has turned bearish, with Bitcoin’s price about 5% lower than last year, marking its first annual decline in three years. Increased volatility has been observed due to weak market participation and low liquidity. Liquidations of leveraged positions after October have also influenced market direction. Additionally, reduced capital inflows into Bitcoin exchange-traded funds (ETFs) have exerted downward pressure on prices. The low trading volume during the holidays has introduced uncertainty, making reliance on short-term signals challenging. Technical analysis indicates that downward pressure on Bitcoin is easing, with prices stabilizing within a wide wedge pattern. A weekly close above $94,000 could open the way toward $101,000 and potentially $108,000. Conversely, a drop below $84,000 might lead to declines between $72,000 and $68,000. Investors are advised to exercise caution given the prevailing short-term market uncertainty.
Source: bitcoinmagazine
