Bitcoin climbed roughly 2.6% during thin holiday trading, yet QCP Capital warns the move lacks the conviction needed for a sustained breakout. According to analysts, the current Bitcoin market volume is insufficient to guarantee a breakthrough above key resistance levels. The official spokesperson for QCP Capital noted that reduced open interest suggests institutional capital remains largely on the sidelines.
The recent rally appears driven mainly by spot and perpetual buying rather than significant forced liquidations in the market. Likewise, open interest fell by 50% following the massive options expiry recorded last Friday across major trading platforms. Therefore, the lack of liquidity during the Christmas holidays could distort the perception of the digital asset’s true strength. In this way, the technical support at 86,000 dollars remains a critical defense zone for traders right now.
On the other hand, experts observe a growing “short gamma” risk for dealers above the 94,000 dollar price level. This technical setup implies that participants must buy spot Bitcoin to hedge their positions if the price continues to rise. For this reason, a breach of this mark could amplify the upward movement through a technical feedback loop. Nevertheless, the buildup of leverage without real volume raises doubts about the stability of this bullish trend soon.
Will the price manage to consolidate above $94,000 before the year-end close?
Despite the uncertainty, optimism among retail traders persists, with an increase of 2.4 billion dollars in leverage this month. However, CryptoQuant analysts warn that true bottoms are formed when leverage clears rather than when it continues to build up. Consequently, the divergence between market sentiment and whale activity suggests a potential correction might occur shortly. Similarly, capital outflows from US spot ETF funds add constant selling pressure to the daily price action.
On the other hand, prominent figures like Brian Armstrong have highlighted Bitcoin’s role as a fiscal check against the US dollar. In a context of rising national debt, the digital asset is positioned as a reserve of strategic value against persistent global inflation. For this reason, price resilience above key technical levels is a relevant milestone for long-term investors today. Furthermore, institutional adoption remains a determining factor for the future of the global cryptocurrencies sector.
Finally, the market expects a reallocation of capital once positions are rebuilt after the start of the new year. Investors’ eyes are on whether Bitcoin market volume will manage to validate the current bullish expectations. Therefore, volatility could return strongly to the tech sector during the first commercial sessions of January very soon. Similarly, transparency in whale movements will be crucial to identifying the next major trend shift for companies involved.
