Bitcoin (BTC) moved closer to the $90,000 mark during Asian trading hours on Monday, extending its rebound from last week’s lows as derivatives data pointed to short-term upside potential. The move comes despite mixed historical evidence for year-end “Santa rallies,” which have produced uneven results in past cycles.
Data from Cointelegraph Markets Pro showed BTC/USD reaching an intraday high of $89,850, up 6.5% from a recent low near $84,400. Analysts said futures positioning and funding rates suggest traders are cautiously rebuilding bullish exposure, setting the stage for a possible test of higher resistance levels if momentum holds.
What Happened
Bitcoin traded near an intraday high of about $89,850, marking a rebound from recent lows as traders watched key support and resistance zones closely. Technical data show short-position liquidations rising, which can fuel temporary price strength, while regime scores indicate neutral-to-bullish conditions that have historically preceded gains.
Some analysts identified bullish chart patterns that could support upside targets as high as $120,000, often discussed in the context of a seasonal “Santa rally” a period of year-end optimism that has historically seen mixed results across cycles.
However, others caution that the track record of December rallies is inconsistent. Analyses of past price action show periods where year-end gains were followed by significant pullbacks, and macroeconomic factors such as broader market risk sentiment and liquidity conditions remain in flux.
Support around $84,000–$85,600 continues to be viewed as a critical line in the sand for Bitcoin bulls. If this level fails, some traders warn that BTC could revisit lower ranges before any meaningful upside attempt occurs.
Why It Matters
The $90,000 price zone is a psychological and technical pivot point for Bitcoin. Holding above this level could keep bullish scenarios alive, while a clear break below may signal renewed short-term pressure. Market participants often watch this threshold for clues about broader trend direction.
Historical patterns provide conflicting signals for year-end performance. While Bitcoin has closed positive in several past Decembers, downside risks including outflows from Bitcoin ETFs and macroeconomic uncertainty have tempered confidence in a repeat seasonal surge.
Sentiment indicators from prediction markets and trader positioning reveal skepticism around a large “Santa rally,” suggesting else that market participants may favor caution over aggressive bullish bets. This sentiment could influence liquidity and trading behavior in the coming weeks.
Conclusion
Bitcoin’s test of the $90,000 level highlights the tug of war between upside targets and caution among traders as the year draws to a close. While technical setups and seasonal narratives offer reasons for optimism, mixed historical evidence and current market sentiment warrant a balanced outlook.
