Bitcoin is currently trading close to $90,500, having spent another session stuck beneath its descending trendline and key exponential moving average (EMA) resistance levels. The market remains tightly squeezed between declining resistance and ascending short-term support, leaving traders focused on whether buyers can maintain the crucial $90,000 level amid ongoing outflows and leverage reduction.
Resistance from Trendline Limits Upward Movement
On the daily timeframe, Bitcoin continues to struggle below a clearly defined downward trendline originating from its peak near $126,000. This trendline converges with the 20-day and 50-day EMAs around the $96,000 to $98,000 range, creating a strong barrier against upward price action.
The 200-day EMA lies even higher at approximately $103,300 reinforcing that the broader market is in a corrective phase. Attempts to rally over this EMA cluster during recent weeks have repeatedly failed—highlighting sellers’ dominance over short-term momentum.
Currently, Bitcoin’s price holds just above an ascending lower boundary of a contracting triangle pattern near $88,500 to $89,000. This formation indicates market compression rather than accumulation as volatility narrows while participants await a clear directional breakout.
Short-Term Charts Reveal Weak Support
Zooming into shorter timeframes offers little encouragement for bulls. On the hourly chart specifically, Bitcoin hovers slightly above session volume-weighted average price (VWAP) at roughly $90,300 but has repeatedly failed to sustain moves beyond$92,000.
The Relative Strength Index (RSI) remains muted around mid-40s territory signaling weak momentum instead of oversold conditions. The absence of significant bullish divergence suggests buyers are merely defending support passively without pushing aggressively higher.
An intraday rising trendline starting from about$85,000 continues providing immediate support levels. A decisive break below$89,000 could trigger accelerated selling pressure toward previous demand zones near$87,500.
Sustained Spot Outflows Weigh on Market Sentiment
The flow data for spot markets underscores prevailing caution among investors. On December 13, approximately&dollar29 million exited exchanges marking another day of net outflows.
Although these outflow volumes are smaller compared with earlier waves, such consistent withdrawals keep upward attempts shallow and vulnerable — lacking conviction until spot flows turn decisively positive again.
Diminishing Open Interest Reflects Leverage Resetting
The derivatives segment shows ongoing deleveraging trends as well. Open interest in Bitcoin futures dropped by more than one percent within one day down to about&dollar58&period7 billion, a sign that speculative activity is cooling off along with sharply reduced trading volumes.
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Liquidation figures reveal most forced closures occurred on short positions recently but remain modest relative to prior sell-offs suggesting no panic but gradual leverage adjustment following November’s downturn..... . . .