Bitcoin and Solana Under Watch: Technical Analysis Reveals Critical Price Zones

Bitcoin Battles for the $90,000 Mark

Bitcoin is currently trading at around $89,800 and has recovered slightly after the price fell to $87,500 over the weekend ^[2]. The Bitcoin price slipped below the psychologically important $90,000 mark and traded at $89,634, with trading volume declining 31 percent to $35.3 billion ^[3].

While the short-term rebound appears constructive at first glance, a closer look at order flow data puts the movement into perspective ^[2]. Notably, open interest is building up again. The sharp sell-off over the weekend had previously removed much leverage from the market and liquidated numerous long positions ^[2].

Critical Liquidity Zones Identified

A look at the liquidation heatmap shows that liquidity can still be captured on the upside in the short term ^[2]. Between $90,000 and $91,000 lie zones where additional short liquidations could be triggered ^[2]. Overall, however, the larger liquidation volume is clearly concentrated on the downside, particularly in the range between $89,000 and $87,000 ^[2].

The underlying rally is so far clearly futures-driven ^[2]. Without additional spot demand inflow, the movement remains vulnerable to pullbacks to the range between $89,000 and $85,500 ^[2]. However, strong support is expected in this zone, as both the order book and the liquidation heatmap signal increased demand there ^[2].

Important U.S. Economic Data Ahead

This week, several important U.S. economic data points are in focus for market participants ^[2]. On Tuesday, the U.S. unemployment rate with a forecast of 4.4 percent and retail sales figures will be released ^[2]. Thursday brings the Consumer Price Index with an expected inflation rate of 3 percent, which is crucial for interest rate expectations from the Federal Reserve ^[2]. On Friday, the Core PCE Price Index will also be published, which is closely watched by the Federal Reserve and currently stands at a forecast of 2.8 percent ^[2].

Solana in Structured Sideways Phase

The Solana price currently presents itself as technically clean and well-structured on the daily chart ^[1]. The market has been in a clearly defined sideways range for some time, indicating a phase of orientation and price discovery ^[1]. Notably, liquidity is increasingly building up above the current price level ^[1].

This imbalance structurally favors an upward scenario, as markets tend to preferentially target and work through nearby liquidity zones ^[1]. However, the prerequisite for this scenario remains a clear breakout above the yellow-red resistance zone ^[1]. Only if Solana manages to sustainably overcome this area and establish itself above the EMA 800 and EMA 50 on the daily chart can a valid trend reversal be discussed ^[1].

Bitcoin Sets the Direction

Solana's further price development will largely depend on whether Bitcoin itself develops strength and stabilizes the market environment ^[1]. As in many comparable market phases, Bitcoin is likely to set the direction while Solana follows this overarching structure ^[1].

On the 4-hour chart, Solana shows an almost identical technical picture to the daily chart ^[1]. In the current price range, there is significantly more liquidity above the price than below, suggesting an existing short delta ^[1]. Additionally, the MACD is beginning to stabilize and shows initial signs of a possible trend reversal in momentum ^[1].

Treasury Companies Remain Active

Japanese Bitcoin treasury company Metaplanet now holds 30,823 BTC, acquired at an average price of $108,036 per token ^[3]. The company is preparing an extraordinary general meeting on December 22, where a "decisive" proposal for future issuance of preferred shares will be discussed ^[3]. Michael Saylor also hinted that Strategy is planning further Bitcoin purchases when he posted "Back to More Orange Dots" on X ^[3].