Bitcoin (BTC) experienced a price pullback, falling back below the $90,000 mark around the time Wall Street trading began on Monday. This renewed selling pressure from US markets has impacted the cryptocurrency's trajectory.
Despite the volatility, liquidations have remained steady, suggesting that investors are adopting a cautious stance and waiting for clearer price direction. This indecisive market action has led many to remain on the sidelines.
However, evidence of buying interest is observable across various exchanges, particularly over the past two weeks, indicating some level of accumulation during price dips.
BTC Price Faces Resistance as Wall Street Reopens
Data from Cointelegraph Markets Pro and TradingView illustrated the ongoing volatility in BTC price action as the traditional finance trading week commenced. After reaching highs above $92,000 during the Asian trading session, Bitcoin struggled to maintain its upward momentum.
The cryptocurrency abandoned a potential retest of the yearly open price at $93,500. Crypto trader, analyst, and entrepreneur Michaël van de Poppe commented on the situation via a post on X, stating that the recent move on Bitcoin faced a harsh rejection at a crucial resistance level, despite some altcoins showing positive movement.
Van de Poppe expressed hope for the formation of a higher low in the near future, identifying $86,000 as a significant level of support.
"And, what if that doesn't happen? Exactly, that's the moment that I'm looking at a sweep of the lows and $86K to hold, that's the final level of support before a test of the lows."
Trading company QCP Capital observed that liquidations occurring during this volatile period remained relatively modest. They attributed this to a notable drop in overall positioning, suggesting a decline in broader interest in the crypto market, possibly due to fatigue, caution, or indifference as traders await clearer market signals.
Data from monitoring resource CoinGlass indicated that 24-hour cross-crypto liquidations stood at $330 million at the time of writing.
Shifting BTC Supply Raises Liquidity Concerns
The announcement of a new Bitcoin purchase by business intelligence company Strategy, valued at nearly $1 billion, did not significantly boost market confidence. As previously reported by Cointelegraph, Strategy increased its Bitcoin holdings by 10,624 BTC last week, with an average acquisition cost just over $90,000 per coin.
QCP Capital further noted that buyer appetite extended beyond institutional investors to the broader exchange user base for both Bitcoin and altcoins. Over the past two weeks, approximately 25,000 BTC have moved off exchange order books, with on-chain analytics platform Glassnode data placing two-week exchange outflows closer to 35,000 BTC.
The Asia Color market update highlighted a significant shift, stating that Bitcoin ETFs and corporate treasuries now collectively hold more BTC than exchanges. This transition signals a migration of supply into longer-term custody, thereby tightening the available float.
"ETH is showing a similar pattern, with exchange balances falling to decade lows. Against this backdrop, Sunday’s moves underscored how little market depth remains as year-end liquidity thins."