Technical Analysis

Bitcoin faces rejection between $91,000 and $93,000 after bouncing from $80,000–$83,000 support. Data show heavy supply near $96,000–$97,000, where short-term and medium-term holder cost bases converge. Technical indicators point to a sell bias unless BTC breaks above the declining trendline and clears $97,000.

Bitcoin dropped below $87,000 on December 1, 2025, following renewed regulatory pressure from China's central bank targeting stablecoins and crypto speculation. The decline triggered over $600 million in leveraged position liquidations within 24 hours. Major altcoins including Ethereum, Solana, and XRP posted losses between 6% and 9%.

Bitcoin gained nearly 6% after a sharp decline, with the sustainability of the rebound depending on macroeconomic data and blockchain developments this week. Federal Reserve Chair Jerome Powell speaks Tuesday, followed by U.S. employment reports Wednesday through Friday. Ethereum's Fusaka upgrade deploys Wednesday, modifying blob capacity and data costs for Layer 2 rollups.

André Dragosch, European Head of Research at Bitwise, argues Bitcoin has priced in bearish growth expectations comparable to 2022 levels while trading at $85,000. He contends downside risks are largely reflected in the current price, creating potential for disproportionate gains if positive catalysts emerge. Dragosch anticipates growth expectations will accelerate based on prior monetary stimulus, drawing parallels to dynamics that preceded Bitcoin's sixfold increase during the COVID-19 period.

Bitcoin declined approximately 5% within 24 hours to $86,415.88 as weakening technical momentum met deteriorating market liquidity. The several-thousand-dollar drop occurred without news catalyst, exposing fragile liquidity conditions and record-high leverage that have defined this year's trading environment. Weekend sessions have repeatedly produced unusually large price swings, with thin order books allowing modest selling to trigger cascading liquidations.

Bitcoin dropped below $86,000 on December 1, 2025, marking its steepest decline in recent weeks and erasing prior gains. The downturn triggered more than $400 million in liquidations across leveraged cryptocurrency futures positions. Global digital asset market capitalization contracted approximately 4% to around $3 trillion, according to market data.

Bitcoin's price trajectory in 2025 mirrors its 2022 bear market behavior with monthly correlation reaching 98%, according to network economist Timothy Peterson. The cryptocurrency trades approximately 36% below its all-time high as the year ends, contradicting earlier forecasts of strengthening momentum through December. Historical data indicates that negative November performance typically leads to December declines, though usually smaller in magnitude.

Bank of America Global Research has placed Bitcoin alongside breakthrough technologies spanning 1,000 years of global disruption. Daily momentum indicators have fallen to their weakest levels in nearly two years. Price action is testing overhead resistance following a weekend rebound from the low-$80,000 range.

Several altcoins recorded significant price movements this week. AAVE climbed 13.5% as whale wallets accumulated $59.93 million in tokens since October, data show. Kaspa jumped 47.4% after breaking key resistance levels, while Ethena gained 22.85% ahead of a December 2 token unlock valued at $26.87 million. Zcash fell 18.6% and Memecore declined 35%.

Bitcoin is testing resistance between $91K and $93K after rebounding from the $80K–$83K demand zone. The cryptocurrency remains confined within a descending channel, with key moving averages declining and serving as dynamic resistance. On-chain data shows additional selling pressure near $96K–$97K, where realized prices of multiple investor cohorts converge.