December Analysis of Bitcoin: What to Expect in the Last Month of 2025?

Source: CritpoTendencia Original Title: December Bitcoin Analysis: What to Expect in the Last Month of 2025? Original Link: Liquidations in the crypto market intensified on Monday, driving the price of Bitcoin down to $84,000 after trading at the $91,000 level. An abrupt drop with which the largest cryptocurrency kicked off December.

At the time of writing, BTC is priced at $84,800, with daily losses of 7.3%, weekly losses of 4.3%, and a 23.2% drop over the last 30 days. BTC starts the last month of 2025 with sharp declines.

$140 billion were wiped from the cryptocurrency market capitalization in the last 4 hours.

What’s Driving BTC’s Current Drop and What to Expect for December?

Although the current BTC pullback is a continuation of November’s decline, today it comes after a combination of different bearish factors.

On one hand, the market saw forced liquidations of leveraged positions totaling over $500 million. To this are added deeper pressures, such as sharp outflows from US spot Bitcoin ETFs and the credit downgrade of Tether.

In addition, the DeFi ecosystem was hit by a security issue in Yearn Finance’s yETH pool, where 1,000 ETH were drained.

However, the main factor in the plunge is that Japan’s Nikkei index sank sharply, and that movement ended up spreading to the rest of the markets, generating broad-based declines.

It’s worth noting that November saw a more than 17% drop for BTC, far from the historically bullish behavior usually associated with that month. This outcome reinforces caution, especially since in the last four years, December has ended negative three times, weakening the traditional optimism toward this month.

Despite current levels, today there is an 86% probability of an interest rate cut in December. Also, on December 1, Jerome Powell, Chairman of the Federal Reserve, will deliver a speech right at the official close of the quantitative tightening program.

In this way, expectations for BTC’s price in December are in the hands of economic factors, a possible interest rate reduction, and, above all, how US inflation performs in the last month of the year, which historically tends to be inflationary.

BTC Chart Analysis: Key Levels to Watch

With the current decline, the market is left wondering whether the move toward $80,000 marked a true bottom or was merely a pause within a broader bearish trend. Thus, the price continues with the downtrend that began in November.

Resistance Levels to Watch:

• $84,965: immediate resistance level where the price meets the 20 EMA.
• $87,371: intermediate resistance at the 50 EMA level.
• $90,000: we won’t see a sustainable recovery until this psychological line is surpassed.

Supports to Watch:

• $83,868: December 1 low; this would be the strongest short-term support.
• $80,000: if the previous support is lost, the price may not find a bottom until this psychological zone.
• $76,500: if the $80,000 area is lost, the price could drop as low as this level.

The RSI at 25 points shows that BTC is in oversold territory, so a rebound is possible in the short term.

Important Data to Consider

According to SoSoValue, November ended with net outflows of around $3.48 billion from ETFs, a figure that places the month among the weakest since 2024.

During the current drop, BTC and ETH were the cryptocurrencies with the most liquidated positions, with about $185 and $154 million, respectively. In total, about $608 million were liquidated in the market over the last 24 hours. Most came from long positions, totaling about $535 million, while shorts accounted for around $73 million.

On Monday, shares of Strategy (MSTR) fell by about 4.7% during the session. In addition, Strategy revised its profit forecast for 2025 downward, attributing the cut to the recent performance of the main cryptocurrency.

Finally, market capitalization has dropped to $2.87 trillion, with a sharp daily decline of 7.7%.