Bitcoin Price Oscillates in Tight Range as $90K Resistance Continues to Frustrate Traders

Bitcoin price is struggling to build sustained momentum above critical resistance levels, oscillating within a confined trading band as the holiday season maintains exceptionally thin market liquidity. Recent data shows the cryptocurrency trading near $88,220 on the latest session, up 1.05% over 24 hours with modest trading volume of $1.02 billion. The bitcoin price remains approximately $2,000 below its near-term high of $88,860, while maintaining a market capitalization around $1.76 trillion against a circulating supply of roughly 20 million BTC.

What’s preventing bitcoin price from making decisive moves higher? Market structure tells an interesting story. A major derivatives settlement event on the exchanges triggered what traders call a “gamma flip”—a technical shift that has fundamentally altered how professional dealers manage their positions.

Options Expiry Reshapes Bitcoin Price Market Structure

The record options settlement marked a turning point in market positioning. Dealers who were long gamma heading into the event have now rotated to short gamma, meaning the underlying dynamics that previously supported upward moves have reversed. QCP Capital, a leading crypto markets analyst, highlighted that this structural shift requires a different type of buying pressure.

In this new configuration, rising bitcoin price movements now force dealers to hedge by purchasing spot bitcoin or short-dated call options. While this can amplify price moves during rallies, it requires consistent buying momentum to trigger the feedback loop. QCP observed a similar pattern earlier this month when bitcoin price approached $90,000—funding rates spiked quickly as dealers adjusted their hedge positioning, contributing to short-term upward pressure.

Recent data from Deribit, the major derivatives exchange, shows perpetual funding rates climbing to above 30% following the options settlement, a stark contrast to the near-flat levels seen prior to the expiry. Elevated funding costs discourage traders from maintaining long positions and typically signal crowded bullish positioning. The latest rally attempt has concentrated activity in the BTC-2JAN26-94K call option, indicating trader interest in the $94,000 level. QCP stressed that exceeding $94,000 could extend the gamma-driven buying support, but emphasized this would require genuine spot market demand rather than just derivative positioning.

Shallow Liquidity Remains the Core Challenge for Bitcoin Price Momentum

The fundamental issue constraining bitcoin price is straightforward: trading volume simply isn’t present. Following the options settlement, open interest plummeted nearly 50%, signaling that many participants have stepped to the sidelines. Without sustained buying pressure from real spot market activity, any upside moves risk fading quickly.

This liquidity desert explains why bitcoin price has difficulty maintaining gains despite positive short-term technical signals. The holiday period typically sees reduced institutional participation, and current conditions appear particularly acute. Even small selling pressure can trigger sharp reversals when volume is this scarce.

Geopolitical Tensions and Energy Markets Add Complexity

The broader macroeconomic backdrop is contributing volatility to bitcoin price movements. Bitcoin initially advanced toward $90,000 as rising oil prices followed intensified military operations affecting energy infrastructure in Russia and Ukraine. Concerns about delayed peace negotiations pushed energy costs higher, amplifying inflation concerns across global markets.

Bitcoin price rallied during Asian trading hours as geopolitical uncertainty escalated, but gave back all gains during early U.S. trading sessions, reflecting the conflicting forces at play. Meanwhile, longer-term bitcoin advocates continue emphasizing the cryptocurrency as a hedge against fiscal imbalances. U.S. national debt has reached approximately $37.65 trillion, supporting the narrative that bitcoin price could benefit from monetary expansion concerns.

Technical Levels Define Bitcoin Price Path Forward

Bitcoin Magazine analysts observe that the broader market continues rejecting lower price levels within a broadening wedge pattern, suggesting underlying support remains intact. For bitcoin price to establish a more convincing uptrend, bulls must accomplish several objectives.

First, breaking the $91,400 resistance would signal building momentum. More critically, a decisive move above $94,000 would be required to establish control. A weekly close above $94,000 could potentially open the door toward $101,000 and even $108,000, though significant resistance is anticipated along the way.

On the downside, $84,000 represents the critical support floor. A breakdown below this level would likely send bitcoin price toward the $72,000–$68,000 range, with potential for deeper losses if that zone fails to hold. Short-term trading liquidity may remain constrained during the current holiday window, but large options expirations clustered near $100,000 will likely influence bitcoin price action going forward.

The consensus among analysts remains cautious. While bulls have demonstrated resilience in defending lower support levels, bitcoin price requires confirmation through increased volume and sustained buying before a stronger uptrend can be established. At current levels, the path of least resistance for bitcoin price depends entirely on whether spot market demand can overcome the structural headwinds created by recent derivatives positioning changes.