Crypto market awaits the final battle of the year

Market Overview

The crypto market lost just over 1% in 24 hours to $3.08T, falling back to the consolidation levels of late November. Attempts to shake up the market at the beginning of this month were unsuccessful for both bulls and bears. Excluding this impulse, the market has been treading water for almost two weeks, hovering around the 23.6% correction rebound line from the October-November decline. Such a shallow rebound could be a sign of a strong bear market, but this will only be confirmed if November's lows of $2.73T are updated.

Bitcoin is trading near $90K, having crossed this level for the fifth consecutive day. An upward trend line can be drawn through the lows of late November, but BTC is now trading dangerously close to this line. At the same time, horizontal resistance has formed in the $92K area, bringing the positions of bulls and bears closer together over time and promising a decisive battle by the end of this week. It could not only be the last significant battle of the year but also determine the trend for the coming months.

Short positions on Bitcoin have recorded their largest outflow since March 2025, when the price of BTC was near its lows. Investors likely believe that the current surge in negative sentiment has bottomed out, according to CoinShares.

According to Glassnode, the reserves of long-term Bitcoin holders fell to a cyclical low in November. This marks the end of the spot sell-offs that have hindered market growth throughout 2025.

Ethereum exchange reserves have fallen to record lows, which could signal an imminent supply crisis, according to CryptoQuant. Since July 2025, the indicator has fallen by about 20%.

The largest American investment company, BlackRock, has applied with the SEC to register an ETF that will allow investors to earn income from staking Ethereum without directly owning the cryptocurrency.

Strategy has increased its weekly Bitcoin purchases to their highest level since July. The company bought 10,624 BTC ($963 million) last week at an average price of $90,615 per coin. Strategy now owns 660,624 BTC, purchased for $49.3 billion at an average price of $74,696 per Bitcoin.

The FxPro Analyst Team