Bitcoin Price Analysis - December 2025
Key Highlights
- Bitcoin (BTC) has seen a recent price increase to $88,000, bouncing off a support level at $85,000.
- Despite this rebound, Bitcoin has experienced a 4.5% decline over the past week.
- ETF outflows have accelerated, totaling $338 million this week, indicating bearish sentiment.
- Over $570 million in liquidations occurred in the last 24 hours, primarily affecting long positions.
Market Sentiment and Technical Indicators
The recent positive inflation report in the U.S. may have contributed to Bitcoin's price rebound. However, bearish sentiment remains strong, as evidenced by significant ETF outflows. The market has seen a notable liquidation of long positions, while short positions have also faced liquidation as prices recovered.
Technical indicators suggest a potential buying opportunity. The Relative Strength Index (RSI) has shown oversold conditions, hitting a low of 23 in late November, and has been trending upwards since. Additionally, the Fear and Greed Index recently reached a record low of 11, historically a bullish signal.
Price Levels to Watch
Bitcoin has established strong support at $85,000, having tested this level multiple times. The critical resistance level to monitor is $100,000, which coincides with the 200-day exponential moving average (EMA). A breakout above this level could signal a reversal of the current downtrend.
Recent price action indicates that if Bitcoin can break through the $90,000 ceiling, the likelihood of a sustained rally towards $100,000 increases significantly.
Conclusion
While Bitcoin's recent price movements show signs of recovery, the overall market sentiment remains cautious due to significant ETF outflows and liquidation events. Traders should closely monitor key support and resistance levels, as well as technical indicators, to gauge potential future price movements.