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Bitcoin falls below $85K as rally stalls under $93K resistance

  • Bitcoin failed to sustain a close above $93,000, halting a potential bullish trend reversal.
  • Spot buying demand remains weak despite a major cluster of accumulated Bitcoin around $84,000 forming an onchain floor.
  • Binance’s Bitcoin-to-Stablecoin Reserve Ratio hit a low not seen since 2018, signaling a large stablecoin supply ready to buy BTC.
  • Bitcoin Price may consolidate between $80,600 and $96,000 as liquidity clusters exist at both levels.
  • Markets might remain sideways ahead of the Federal Reserve’s December 9–10 meeting with traders awaiting interest rate signals.

Last week, Bitcoin’s price briefly reached approximately $93,300 but failed to close above this key resistance level. By Monday, the price had dropped below $85,000, continuing a mean-reversion trend and invalidating a bullish trend reversal. This price action reflects difficulty in breaking through the upper barrier during recent trading sessions.

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The current challenge for Bitcoin stems from thin spot liquidity and shallow order-book depth around the $93,000 level. More than 400,000 BTC acquired near $84,000 have established an onchain floor, but active buying between $84,000 and $90,000 remains weak. Many short-term holders are still holding below their average entry price of $104,600, contributing to a low-liquidity environment.

Data from CryptoQuant showed that Binance’s Bitcoin-to-Stablecoin Reserve Ratio dropped to its lowest point since 2018. This ratio compares Bitcoin held on the exchange to stablecoins, implying a large stablecoin supply is poised to buy BTC. Historically, such extreme ratios on exchanges have preceded major price rallies.

Currently, Bitcoin is trading within a range bounded by $80,600 to $84,000 on the lower end and $96,000 on the higher end, with liquidity concentrations at these levels. A retest of the lower band could help absorb selling pressure and build a base before prices potentially rise. Conversely, attempting to retest the upper band without replenishing liquidity below may lead to a renewed sell-off.

Given the present market conditions and the upcoming Federal Reserve meeting on December 9–10, a period of sideways price consolidation appears likely. Traders may remain cautious, awaiting signals regarding U.S. interest rate policies before making significant moves.

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