Bitcoin Breaks Above $90,000 as Traders Bet on New Year Rebound
Bitcoin surged past $90,000 in Asian trading as short liquidations triggered momentum and traders positioned for a potential year-end breakout.
Bitcoin rose in Asian trading to top $90,000, hinting at a potential breakout after the token missed out on a Santa rally that sent stocks to record highs.
What Happened
Bitcoin surged approximately $2,600 in just four hours during Asian trading on December 29, briefly pushing the price above the psychologically significant $90,000 level. The rapid move triggered over $102 million in short liquidations as bearish traders were forced to close positions.
Total cryptocurrency market capitalization jumped by $80 billion during the rally, reclaiming the key $3 trillion level. Ethereum and major altcoins including XRP and Solana also posted gains during the session, though prices have since pulled back from intraday highs.
Why It Matters
The rally comes as gold and silver prices dipped, strengthening speculation that capital may be rotating from traditional safe-haven metals into Bitcoin. This potential shift signals a renewed risk-on phase for digital assets heading into 2026.
Bitcoin's monthly close is set for this week, and December is shaping up to print a dragonfly doji, one of the strongest bullish reversal signals in technical analysis. This pattern suggests strong dip-buying pressure after recent weakness. Analysts note Bitcoin remains range-bound between roughly $86,500 and $90,000, with the current move testing the upper boundary.
What to Watch
Short liquidation intensity metrics have turned bullish, with recent large options expiries at strikes around $100,000 to $118,000 setting up favorable positioning. This creates an artificial floor for prices while setting the stage for a potential post-holiday surge. Market participants will monitor whether Bitcoin can reclaim and sustain above $90,000 as year-end trading concludes and 2026 begins.
Key Takeaways
This is a developing situation as markets enter the final trading days of 2025. The interplay between short liquidations and year-end positioning could drive continued volatility.
