Now Bitcoin is like being stuck at the price of $90,000 with no movement.
Previously, even with the announcement of such a favorable interest rate cut, the BTC price once surged to $94,000, but due to the subsequent cautious statements from officials, the market quickly switched from a risk-taking mode to a risk-averse mode, and the price quickly fell back to around $90,000.
Moreover, the buying strength of major buyers, especially companies like DAT, has clearly weakened. Without their strong buying support, BTC's upward momentum has diminished.
What is firmly keeping Bitcoin at the $90,000 level is what I mentioned before; the cryptocurrency market is almost being led by the options market. Data from the Deribit platform shows that $90,000 is where large options are concentrated, which is often referred to by analysts as the maximum pain point.
Market makers hedge risks, and as soon as the price slightly deviates from this point, they will take reverse actions. As the price rises, institutional hedges and profit-taking orders will quickly act, pulling the price back to $90,000.
Additionally, analysis institutions like Glassnode have found that short-term holders of Bitcoin have an average cost as high as $110,000. The market is filled with panic; every time the BTC price rises slightly, those who are trapped and eager to recover their costs will quickly sell, which also adds to the resistance against price increases.
One more thing to note is that starting from late November, a large number of Bitcoins have been deposited into exchanges, and this behavior has clearly increased. This means that for BTC to rise, it not only has to break through the resistance set by the options market but also face selling pressure from short-term liquidation. Without a continuous and substantial influx of capital to take over, it is difficult for Bitcoin to experience a large-scale upward trend.
Although the market is slightly sluggish now, opportunities to earn USD will come! Be patient and wait for the right opportunity; the chatroom has provided below, and I will share the trading points later.
