BTC faces key test at $95K amid derivatives, spot conflict

Bitcoin's potential for further gains may be limited unless it can decisively break through the $95,000 resistance level, according to an analysis by Glassnode. The firm noted that the surge above $90,000 on Dec. 17 was primarily driven by leveraged derivatives traders, a trend supported by rising open interest and a positive perpetual futures volume delta. Conversely, the subsequent sharp drop was largely due to selling from spot market investors, with the price being rejected by a significant supply wall between $93,000 and $120,000. Glassnode concluded that a sustained rebound is unlikely until Bitcoin reclaims the $95,000 resistance and the short-term holder break-even point of $101,500. Adding to this outlook, Ryan Yoon, a senior analyst at Tiger Research, stated that strong bearish sentiment across the market makes a sharp year-end rally improbable. However, Yoon suggested that a favorable U.S. November Consumer Price Index (CPI) report could potentially trigger a short-term bounce.