The sharp movement on December 17 in Bitcoin caught traders off guard. Within a day, BTC rose to approximately $90,500, then suddenly changed direction and fell to around $85,200. This movement from high to low was more than 5%, resulting in a fluctuation of about $5,000.
There is no news behind this movement; it was entirely due to technical structure. Three charts clearly illustrate why this price fluctuation occurred, why it stopped at exactly that level, and why similar volatility is still possible.
Volume Distribution Showed Risk Before the Decline
Before the sales began, the BTC price movement was already showing signs of stress. Between December 15-17, the Bitcoin price made a slightly higher low on the daily chart. At first glance, this movement seemed stable. However, On-Balance Volume (OBV) was telling a different story.
OBV tracks whether volume confirms price movement. During this period, OBV did not move up with the price; rather, it made a lower low. This bearish divergence signaled the beginning of distribution. In short: even if the price was holding up, volume was slowly withdrawing from the market.
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As Bitcoin approached $90,500, this rise was accompanied by weak participation. This made the rise fragile. When selling came, there was no volume support below, and the correction abruptly turned into a severe intraday shake.
In the markets, the term "whiplash" describes a sharp downward move (or the opposite) immediately following a rapid upward movement.
Cost Basis Heat Map: Why Was $90,500 Rejected, Why Was $85,200 Supported?
On-chain cost basis data clarifies the exact reversal points of the movement.
The cost basis heat map shows a dense supply cluster in the range of $90,168 – $90,591. There is a total of 115,188 BTC accumulated in this area. When the price reaches this level, many investors reached their break-even point.
This situation may have created immediate selling pressure. Combined with the weakness in OBV, this area served as a ceiling. The upward movement stalled and then reversed.
On the downside, the picture is changing.
Another strong cluster is found between $84,845 and $85,243. This area is the most intense short-term support line on the chart. As the price fell, buyers came in strongly at this level. If the Bitcoin price hasn't plummeted further, this is the reason even during forced liquidations.
Thus, the movement was squeezed between two main levels. Sellers defended $90,500 while buyers showed resistance at $85,200. All the whiplash occurred within these walls.
Bitcoin price levels will now determine whether volatility will return.
Structurally, Bitcoin is still maintaining a slight upward trend since the low on November 21. This is important. Yesterday's volatility event occurred within this range.
One level stands out for the continuation of the upward trend: Bitcoin must make a clear daily close above $90,500. This level has not been reclaimed since December 13. If there is no closure above that level, every rise will carry the risk of rejection.
Above this, the range between $92,200 and $92,300 is critically important. On-chain data also shows a new supply cluster here. As long as the price does not clearly exceed this area, traders may face resistance. Additionally, it may be healthier for traders here to focus on complete daily closures at significant levels highlighted on the charts rather than wick-based exits.
Below, the range of $85,000 – $85,200 is still determining. As long as this cluster is strong, the likelihood of a deeper decline is weak. If the support here breaks down, the door opens to $83,800, but new liquidation pressure must emerge to break $85,000.
The summary is quite clear! The sharp price fluctuation of over 5% in Bitcoin did not happen randomly. Low trading volume, selling pressure concentrated at certain cost levels, and tight liquidity were the main reasons for this movement. As long as this structure does not change, such sharp movements are unlikely to surprise us in the cryptocurrency market.
