Bitcoin’s liquidity test: Will $87K decide BTC’s next major move?

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The markets are tense, but Bitcoin’s chart tells a much more strategic story than the latest clickbait headlines would have you believe. 🧐

BTC pulled back after a valiant attempt to break through the almighty $94.5K ceiling. Meanwhile, the 3-day heatmap is looking suspiciously like a magnet, with long liquidity building up heavily between $89K and $87K. You know what they say: the market always loves a juicy liquidity pool… before it eats you alive. 😅

These dense clusters are like the ultimate game of hide-and-seek-only it’s the smart money doing the seeking, trying to catch those poor over-leveraged positions hiding in plain sight. 🕵️‍♂️

The current pullback? Oh, it’s right on schedule. Price is casually drifting towards untouched liquidity pools that could very well set the stage for Bitcoin’s next big move. A pivot, if you will. 🤔

Will Bitcoin drop to sweep liquidity at 89K-87K?

The slide towards $90K was like clockwork, matching the liquidity that had been brewing earlier in the week. But wait-there’s more! A deeper liquidity cluster still lurks between $87K and $86.3K, just waiting to be tested. It’s been untouched since December, which means it’s practically begging for attention. 📅

If BTC can’t hold above the current levels, this zone becomes the next logical target. A sweep into this pocket would be like pulling the rug out from under those overly confident longs before any real reversal attempt. 🧹

If BTC loses this area, it’s heading straight for $86,320. And if things get ugly, we’re talking about a deeper liquidity shelf near $80,507 acting as the final downside magnet. The drama! 😱

What happens next depends on whether Bitcoin can defend this crucial $89K-$87K block. If it does, we might see a lovely little rebound towards $96K. If not, well… it could be the start of a much broader breakdown. 😬

Can Bitcoin explode from THIS level?

Right now, Bitcoin’s doing the ol’ two-step between two overlapping bullish structures: a minor ascending triangle (hello, short-term compression) and a major ascending trendline that’s been providing support like a loyal friend since November. ☝️

BTC tapped the lower boundary of the minor triangle with such precision, you’d think it was programmed to do so. Meanwhile, RSI is showing a clear bullish divergence-classic stuff, folks. The downside pressure? Losing steam like a soggy balloon. 🎈

If structural support holds, this could lead to a sharp rebound. But don’t get too comfy just yet. A breakdown from the minor structure would expose the major trendline-and if that goes, the market’s liquidity shelves between $86K and $80.5K would come calling. 🏚️

Farzam Ehsani, CEO of VALR, summed up the vibe perfectly when he said,

“Bitcoin’s technical picture reflects this nervousness. Resistance at $92,000 and a narrowing range are setting the stage for a decisive breakout that could determine the direction for months to come.”

Fed cut reaction: Macro fear vs. technical reversal

The Fed’s 25 bps cut briefly sent BTC to $94.5K before the sellers came crashing in like a wave of cold water. Similar patterns have emerged in the past, where early optimism gets squashed faster than you can say “quantitative easing.” 💸

Powell’s quiet hints about Treasury purchases and his warnings about rising inflation and employment risks were enough to get the market’s nerves all jangly. Some of us are still trying to figure out how to react to all this, and it’s starting to feel a little like watching an action movie with too many plot twists. 🎬

Nine out of twelve FOMC members voted for the cut, so it was no surprise. But the markets didn’t exactly embrace this move with open arms. Instead, Bitcoin did what Bitcoin does best: pulled back. 🙄

Ehsani continued with a pretty heavy warning,

“Scrutiny of US government decisions, which encompasses the largest Bitcoin holders, is based on the notion that a new round of domestic economic disasters due to the bankruptcy of companies with significant Bitcoin reserves, which actively lobbied for their interests and sponsored the current government during elections, is unacceptable.”

So, yeah. Big implications here. But let’s not get ahead of ourselves. The macro fears and Bitcoin’s technical setup are clashing at a critical moment, and we’re all holding our breath. 😶

Path toward $96K: Can BTC reverse?

CryptoQuant’s analysts are seeing a clear drop in selling pressure. Exchange deposits have dropped from 88K in late November to a mere 21K today. 🙌

Whale deposits slid from 47% to 21%, and average deposits shrunk from 1.1 BTC to 0.7 BTC. Translation: big sellers have stepped back, and that could mean relief for Bitcoin. 🐋

Ray Youssef, CEO of NoOnes, had a more optimistic take, saying,

“A dovish Fed tone could open the door to renewed risk-on sentiment, triggering a ‘Santa rally’ for digital assets, with BTC reclaiming $100,000, ETH rising above $3,500, XRP at $2.3, and Solana moving towards $150.”

Now we’re talking! 🎅

For Bitcoin, $99K is the first major upside checkpoint. Anything above that, and we’re eyeing $102K and $112K as the next resistance zones. If Bitcoin can avoid a deeper liquidity sweep, there’s still hope for a move towards $96K. 🍀

Youssef summed it up nicely,

“Market structure is finally beginning to stabilize after recent forced unwinds and intense selling pressure, particularly from long-term holders. However, the depth of the market recovery remains shallow.”

He wasn’t done there, though, continuing with a warning:

“ETF inflows have only recently turned positive after heavy redemptions, and cumulative spot buying pressure is still underwhelming.”

Final Thoughts

  • The liquidity clusters below remain the biggest near-term risk. 🤞
  • Bullish divergence and easing selling pressure keep the upside scenario alive. 📈

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2025-12-11 22:38