"Then early January changed the setup. Bitcoin ETFs pulled in $471 million on January 2-the second-highest daily inflow since mid-November-and volume returned as institutions re-entered the market. The breakout finally had the backing it needed-and the $90,000 level that repeatedly rejected price throughout December finally gave way on January 3, with BTC briefly testing $95,000, marking a new yearly high."
"The $90,000 level represents a major profit-taking zone for investors who accumulated Bitcoin in the $60,000-$70,000 range. With gains of 30-50%, many locked in profits, creating persistent sell pressure. This overhead supply capped each rally as sellers stepped in, resulting in a self-reinforcing ceiling that proved difficult to overcome. Significant open interest in call options between $90,000 and $95,000 created a hedging dynamic where dealers sold spot Bitcoin to remain delta-neutral, effectively reinforcing resistance."
Bitcoin broke above $90,000 in early January after spending December stuck between $86,000 and $90,000 amid low holiday volumes and sidelined institutional capital. A $471 million ETF inflow on January 2 restored volume and institutional participation, enabling a January 3 breakout and a brief test of $95,000. Price now trades around $92,000â$94,000 and must clear $95,000 to continue toward $100,000, or it may retest $90,000 support. December resistance came from profit-taking by buyers accumulated at $60Kâ$70K, large call-option open interest prompting dealer hedging, and an unclear Federal Reserve policy outlook.
Read at 24/7 Wall St.
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