Bitcoin continues to hover inside a corrective structure, with price compressing between major supply and demand zones after multiple failed attempts to break higher. Recent price action suggests the market may be transitioning from heavy selling to early re-accumulation, though buyers have yet to show convincing strength.
Technical Analysis
By Shayan
The Daily Chart
Bitcoin remains confined within a broad descending channel, with the upper boundary acting as a persistent dynamic resistance. The most recent rejection from the $94K–$96K region once again confirms this zone as a major supply area. This level also overlaps with a broken support, which has now turned into resistance and a prior daily order block, resulting in notable selling pressure.
Beneath current levels, the $82K–$79K demand zone remains a critical area where strong buying activity previously emerged, marking the lowest point of the corrective leg. If Bitcoin experiences another downturn, this zone is expected to provide significant support.
To the upside, reclaiming and closing above $94K would be the first meaningful signal of a trend reversal, opening the path toward the next major supply region around $105K–$108K. Until then, the market is likely to remain range-bound, with continued choppy price action inside the descending structure.
The 4-Hour Chart
On the 4-hour timeframe, Bitcoin has broken its short-term descending trendline, shifting the local momentum toward a more neutral, potentially bullish posture. The price is now pressing into the $92K–$93K resistance band, a key short-term decision zone represented by a supply block and the prior 4H rejection cluster.
The structure currently resembles a symmetrical compression between the yellow ascending trendline (higher lows) and the former descending trendline from November. This tightening formation reflects ongoing absorption of sell-side liquidity but lacks a decisive breakout.
A clean break above the $93K region would confirm short-term bullish continuation and likely propel price toward the $94.5K–$96K area, where the daily timeframe’s major resistance comes into play.
Conversely, if price rejects once again, the ascending trendline near $88K would be the immediate support. A breakdown from this level would expose the broader $82K–$79K demand zone, aligning with the lower boundary of the daily channel.
Overall, the market remains in a state of equilibrium, with neither buyers nor sellers showing dominance.
Sentiment Analysis
By Shayan
The Coinbase Premium Index continues to serve as a valuable indicator of U.S. investor sentiment during this corrective phase. After a prolonged period of deeply negative readings throughout late October and November, coinciding with heavy price retracement, the premium has shown signs of stabilization.
Notably, Bitcoin’s recent attempt to recover above $90K has been accompanied by a reduction in U.S.-driven sell pressure. While premiums remain mixed, the sharp negative extremes observed in November have eased, suggesting that the most aggressive phase of U.S. capital outflows may be behind the market for now.
However, unlike early December, when the premium flipped strongly positive in your previous analysis, this latest data shows a more muted recovery. U.S. demand appears cautious rather than aggressive, and this hesitation is reflected in Bitcoin’s inability to break decisively above $94K.
In the near term, Bitcoin’s direction will remain tightly linked to shifts in U.S. capital flows. A sustained return to positive premium values could be the catalyst for a breakout from the current consolidation, whereas renewed negative pressure would likely reinforce the corrective structure.
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