Bitcoin (BTC) started December under pressure, falling after a failed attempt to reclaim key resistance near $93,000.
As a result, the move has sparked debate among analysts about whether the recent price action is a pause before a rally or the start of a deeper decline.
Resistance at $93K Holds Firm
Bitcoin’s price attempted to break above the $92,000–$93,000 area but was pushed back, showing weakness at a level many traders marked as critical. Analyst Colin Talks Crypto commented,
“$BTC rejects from underside of megaphone in first attempt. This is not strong momentum.”
The asset is around $86,500 at press time, with a 5% drop over the past 24 hours. This comes after a recovery from Monday morning lows near $85,000, which has now stalled below the megaphone’s lower trendline — a pattern associated with rising volatility.
Colin still sees a potential move higher in the short term. His base scenario includes a rally toward $100,000 to $115,000, followed by a correction phase. He adds that the next market downturn could be a brief one lasting around six to eight months, or it could follow a more typical one-year cycle.
Bearish Setup Still in Control
Crypto Patel, another market analyst, described the price action as unfolding “exactly as mapped.” He pointed to a rejection from the $93,000 bearish order block, with the price quickly falling to $85,700. He has now identified $76,000 as the next downside target.
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Patel has also adjusted his bearish invalidation level to $93,100, meaning that only a strong close above that point would change his outlook. Until then, he maintains that the trend remains to the downside.
Charts shared by Patel show a clean breakdown below trend support, a failed retest, and a continuation lower — consistent with the view that momentum remains weak unless bulls regain control above key levels.
Moreover, traders tracking liquidation data report that a large portion of long positions were wiped out during the drop from $91,000 to $85,000. Analyst Ardi noted that remaining long interest is now clustered in the $83,000–$85,000 range.
He also pointed out a buildup of short positions around $91,500–$93,000, while calling attention to the lower liquidity bands. “The bigger magnet right now is below,” he said, suggesting that a sweep of the lower range is possible if the $86,000 area fails to hold.
Key Levels in Focus
Meanwhile, Bitcoin’s monthly candle for November closed below support, which some analysts compare to historical patterns that preceded major moves. Trader Tardigrade mentioned that the breakdown mirrors late 2016, a time that later saw a strong upward trend.
Daan Crypto Trades noted that while the long-term structure is still intact, bulls do not want to see a return to the $80,000 range, which would risk breaking market confidence. December often brings increased activity, and the market appears to be setting up for more volatility.
For now, price remains trapped between support near $84,000 and resistance at $93,000, with short-term direction likely to depend on how Bitcoin reacts at these key levels.