Bitcoin has a chance to conquer the $90,000 mark: Market signals

Selling pressure on Bitcoin has surged, reaching the highest level in three years. The intense sell-off wave from the Taker group is completely dominating the market dynamics, pushing prices into a prolonged correction cycle lasting several weeks. This trend became even more evident after the sharp decline on 10/10, marking a negative turning point in trader sentiment.

Meanwhile, capital flows from spot Bitcoin ETF funds continue to record negative figures, indicating that investors remain cautious. This development clearly reflects weakening market sentiment across the entire cryptocurrency space, in the context of risk appetite shrinking towards the end of the year—a period typically associated with increased volatility.

In the short term, some expect that Bitcoin (BTC) could retreat to around $82,000 before a technical rebound towards approximately $95,000, related to the large options expiration on Friday. However, negative ETF flows and increasing selling pressure continue to suggest that market demand remains in a state of deficiency.

What should traders expect from Bitcoin price action?

Source: Root on XIn a post on X, on-chain analyst Root stated that Bitcoin is currently trading close to its on-chain fair value. This index is built based on various fundamental factors such as real market capitalization, coin days destroyed, and liquidity supply measures, aiming to reflect the market’s “true” valuation.

According to Root, since March 2024, Bitcoin has mostly been overvalued. By the end of 2024, the price has even fallen deep into a severely overvalued zone. Therefore, a correction back to the current fair value does not necessarily present a clear buying opportunity.

Source: Axel Adler Jr on XAnalyst Axel Adler Jr added that the short-term trader market is entering a rare equilibrium state of pressure. The related index has fallen into the lowest 5% of the distribution, indicating that buying and selling forces among short-term holders are nearly balanced. This phenomenon has appeared in only about 5.8% of observations over the past three years, reflecting market hesitation in seeking the next direction.

Source: CoinGlassFrom a technical perspective, the liquidation map shows that the $83,500 and $94,700 zones are the nearest liquidity “attractors,” while the $90,000–$92,700 area forms a notable liquidity cluster to watch closely.

Source: TradingViewOn the daily timeframe, December price action lacks a clear trend, with short-term structure leaning bearish. This increases the likelihood of prices returning to the liquidity zone around $84,000.

Fibonacci retracement levels indicate that Bitcoin needs to break through $101,700 and especially $107,500 to reverse market sentiment into a more optimistic state. Overall, Bitcoin is likely to continue sideways in the coming week, with short-term volatility significantly influenced by the upcoming options market expiration (options).

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