Bitcoin Price Battles for Momentum as Year-End Trading Thin Out Hopes for New All-Time High

As January draws deeper into its final weeks, Bitcoin Price continues to struggle near the $87,500 mark, with trading volumes plummeting and market participants retreating into hibernation mode. The world’s largest cryptocurrency finds itself trapped in a holding pattern, unable to muster the conviction needed for a meaningful breakout as sporadic year-end trading conditions persist. At the time of writing, BTC trades at $87.48K, down 0.52% over the past 24 hours, while trading volume has contracted sharply to just $1.28 billion—a fraction of what would typically be required to drive sustained momentum. Bitcoin’s circulating supply now stands at 19,980,818 BTC against its hard cap of 21 million coins, with the network’s total market capitalization hovering near $1.747 trillion.

The cryptocurrency currently sits roughly 1% below its seven-day peak, confined within a narrow corridor that has defined price action since late 2024. That structure emerged following October’s dramatic sell-off and subsequent downturn from Bitcoin’s all-time high achieved earlier that same month. Back then, optimism surrounding crypto-friendly policies had powered prices nearly 30% higher for the year. Today’s reality tells a starkly different story: Bitcoin Price has retreated approximately 5% from its 2025 year-end close, positioning it on course for losses if momentum doesn’t shift decisively.

Market Caught Between Liquidity Drought and Year-End Uncertainty

The core problem plaguing Bitcoin Price isn’t fundamentals or technical damage—it’s the profound absence of market participants. Holiday-thinned trading conditions have created an environment where even modest price swings look exaggerated relative to actual conviction. Jasper De Maere, a desk strategist at Wintermute, cautioned that markets are likely to experience outsized moves on minimal flows throughout the New Year period, with traders advised to discount short-term price signals until normal liquidity returns.

The reality is stark: spot Bitcoin exchange-traded fund flows have turned negative, with roughly $6 billion in outflows recorded during the final quarter of 2025. That steady withdrawal of capital has added continuous downward pressure precisely when the Bitcoin Price needed support. Price action has oscillated wildly in recent days during low-liquidity Asian sessions, posting temporary 2.6% gains followed by equally sharp reversals—moves that proved unsustainable once normal market hours resumed.

Derivatives Market Reveals Hidden Weakness in Bitcoin Price Rally

Beneath the surface, derivatives activity paints an even more cautious picture. According to analysis from QCP Capital, the massive options expiry from last Friday reset market positioning in ways that now disadvantage bulls. Prior to that event, dealers maintained long gamma exposure; afterward, the positioning flipped to short gamma on the upside. This technical shift means that as Bitcoin Price attempts to move higher, the resulting hedging activity could amplify selling pressure—particularly damaging in thin liquidity conditions.

Open interest has collapsed by nearly 50% since that expiry, with many traders simply exiting positions and moving to the sidelines. Perpetual funding rates have surged to unsustainable levels above 30% on Deribit, up from near-zero beforehand, signaling that remaining participants are crowded into bullish positions at elevated cost. Such overheated financing conditions typically precede either consolidation or mean reversion.

The pattern mirrors previous attempts to breach $90,000, when rapid funding rate climbs attracted additional buyers, only to see momentum evaporate once resistance proved genuine. Bitcoin Price’s repeated failures around $90,000 suggest that supply remains substantial at those levels—a clear sign that believers in a run toward the all-time high remain skeptical.

Technical Setup Offers Cautious Hope Amid Resistance Pockets

From a technical standpoint, Bitcoin Magazine’s analysts note that the market continues to reject lower price levels within a broadening wedge pattern, which could indicate weakening downside momentum. Key resistance zones sit at $91,400 and $94,000, with a weekly close above $94,000 potentially opening pathways toward $101,000 and eventually $108,000. However, resistance at those levels appears formidable, particularly given the USD-denominated funding costs now priced into long positions.

On the downside, support becomes critical at $84,000 in USD terms. Should Bitcoin Price break beneath that floor, weakness could accelerate toward the $72,000 to $68,000 range—a scenario that would represent a sharp retreat from the all-time high achieved just months ago and might signal a more substantial correction ahead.

The Waiting Game: What Lies Ahead for Bitcoin Price

For now, Bitcoin Price remains effectively hostage to calendar dynamics. The return of normal liquidity following the holiday period will likely prove decisive—either providing the volume needed for a sustained breakout or finally clearing trapped bulls who refuse to accept consolidation. Either outcome would be more informative than the current price action, which reflects desperation more than conviction.

Traders seeking clarity on Bitcoin Price direction should prepare for continued volatility through early February, with sustained moves requiring a genuine return of capital and participation to the market.