Bitcoin Sentiment Remains Divided as Price Hovers Near $90,000 Amid Mixed Market Signals

Bitcoin Tests $90,000 Resistance

Bitcoin approached the $90,000 level on Monday as bulls sought to extend a recent recovery, with data from Cointelegraph Markets Pro and TradingView showing BTC/USD hitting an intra-day high of $89,850, up 6.5% from a local low of $84,400 ^[2]. The cryptocurrency currently stands 5% lower than its January opening price ^[1].

Analyst AlphaBTC suggested in an X post that Bitcoin is "looking for a Santa Rally," with potential targets at the yearly open of $93,300 and later toward the $98,000 to $100,000 resistance zone ^[2]. Fellow analyst Captain Faibik identified Bitcoin consolidating within a wide range between $82,000 and $95,000 since November 22, noting that "the longer the consolidation, stronger and bigger the rally that follows" ^[2].

Technical Indicators Point to Bullish Patterns

The measured target of a bullish megaphone pattern is $120,000, representing a 34% rally from current prices ^[2]. CryptoQuant analyst Axel Adler Jr. noted favorable conditions, stating: "BTC is entering a window for a Santa rally: the Regime Score is bullish but not overheated" ^[2].

The derivatives liquidation structure indicates a predominance of short position closures, which can create upward pressure on the price ^[2]. Trader Daan Crypto Trades emphasized that $84,000 "remains a key area to defend for the bulls on the high timeframe," with Glassnode's cost basis distribution heatmap reinforcing the importance of this level ^[2].

Competing with Record Precious Metals Rally

While Bitcoin struggles to regain momentum, precious metals are hitting new all-time highs. Gold climbed to over $4,400 per ounce on Monday, representing a 66% gain since the beginning of the year ^[1]. Silver targeted the $70 mark for the first time, up nearly 150% in 2025 ^[3].

Schiff's Poll Backfires Despite Bitcoin Underperformance

Prominent gold advocate and Bitcoin critic Peter Schiff conducted a poll asking his followers whether they would invest $100,000 in Bitcoin, gold, or silver. The results showed 62.4% favoring Bitcoin, while only 21.1% chose gold and 16.5% selected silver ^[1].

Schiff remained unimpressed by the results, claiming that BTC investors are more motivated to participate in such polls "to strengthen the optimistic narrative necessary to further build their pyramid scheme" ^[1]. He stated that "Bitcoin is the reason why so many people don't buy gold or silver," describing it as an "expensive distraction" ^[1].

Bear Market Indicators Emerge

CryptoQuant's Bull-Bear Market Cycle Indicator has been in negative territory since early September, currently measuring -0.52 and hitting its lowest levels since the 2022 bear market ^[3]. The indicator measures the 30-day SMA of traders' Profit & Loss Index relative to its 365-day equivalent ^[3].

Contributor GugaOnChain compared the current situation to 2018, another bear market year, noting reduced network activity. "The indicators confirm a defensive scenario, and looking ahead, the comparison with 2018 suggests that periods of low activity tend to precede greater volatility," he summarized ^[3].

US Selling Pressure Continues

The Coinbase Premium, which measures the price difference between Coinbase's BTC/USD and Binance BTC/USDT pairs, remained in negative territory, signaling continued US selling pressure. The Premium hit -$56 on December 18 before rebounding slightly ^[3].

Sentiment Remains in Extreme Fear

The Crypto Fear & Greed Index stood at 25/100, indicating "extreme fear" despite a nine-point increase ^[3]. This contrasts with the 45/100 "neutral" reading for stocks ^[3]. Crypto trader Michaël van de Poppe maintained optimism, stating: "The markets are in extreme fear, which have often been providing to be a great opportunity to be seeing a strong move afterwards" ^[3].