Bitcoin (BTC) struggled to continue its rebound at Tuesday’s Wall Street open as attention focused on $95,000 sellers.
Key points:
Bitcoin faces resistance as it approaches a large area of seller interest at $95,000.
BTC price action begins to weaken versus risk assets and precious metals.
Support on weekly time frames remains intact, with $93,500 a key focus for the weekly close.
“Choppy” BTC price action follows $95,000 test
Data from TradingView tracked a loss of BTC price momentum after BTC/USD hit $94,800 the day prior, its highest since Nov. 17.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
“Choppy price action starting to show up in market data especially here,” trader Skew wrote in part of his X analysis on the day.
Skew identified what he called a “passive seller” at $94,000, referring to an entity selling into price upside in a sustained manner.
“Longs realise the subtle cue around $94K the second time and bail from positioning only for late shorts to start positioning. Typically there’s a lot of decay on these days,” he wrote, including a chart of exchange order-book data.
BTC/USDT order-book data (Binance). Source: Skew/X
Commentator account Exitpump flagged a wall of asks at $95,000 keeping price in check.
“Big boy sell wall at 95K on spot orderbooks, today is the day price either smashes through it or rejects from it,” Exitpump wrote.
BTC liquidation heatmap. Source: CoinGlass
On macro, the party continued, with US stocks heading higher and gold reaching $4,491 per ounce, fueled by developments in Venezuela. Silver retook the $80 mark.
In its latest “Asia Color” market update, trading company QCP Capital referenced crypto falling back in line to follow major asset classes.
“Crypto’s recent alignment with broader risk assets may signal a regime shift and the strengthening of bullish narratives to start the year, especially with the year-end tax loss harvesting shenanigans out of the way and a new crypto bill on the horizon,” it wrote.
“While much of this narrative was likely already priced in, Washington’s Venezuela shock could serve as a near-term…..
