Bitcoin Price Analysis: BTC Records Modest Boxing Day Increase But Fails To Stay Above $89,000
Bitcoin (BTC) overcame an early Boxing Day scare to reclaim $89,000 despite thin trading levels, thanks to the Christmas and New Year week. The flagship cryptocurrency traded above $88,000 on Christmas but dipped to a low of $86,897 early on Boxing Day.
However, it rebounded from this level to reclaim $89,000. However, it could not sustain momentum and moved to $88,654, up 1.50%.
Meanwhile, spot Bitcoin ETFs recorded $175 million in outflows on Wednesday, dampening market sentiment. However, Bitcoin has remained stable despite two consecutive days of ETF outflows, although it remains unclear whether price action will be bullish or bearish.
Bitcoin OG Whale Sitting On $41.8M Unrealized Loss
A Bitcoin “OG Insider Whale” has paid nearly $3 million in funding fees while holding several long positions across BTC, ETH, and SOL. According to data from HyperInsight, the OG whale’s total exposure sits at $755.5 million as of December 26. The whale has a combined unrealized loss of $41.8 million, primarily due to a $35.6 million floating loss on its ETH long position.
Investors Position Themselves For Year-End Risk Bid
Bitcoin (BTC) briefly crossed $89,000 early on Boxing Day, giving investors hope it could reclaim $90,000 once liquidity returns. Several Asia Pacific exchanges remain closed for the holiday, forcing investors to look for cues from the last full session. According to Gabriel Selby, head of research at CF Benchmarks, Bitcoin remains under key levels as markets enter the seasonal lull. Selby stated,
Bitcoin has struggled to break above the $90k level during a busy schedule of macroeconomic data releases, and price action appears to be forming a bearish wedge with downside risk. As we head into the holiday period, trading volumes are following their usual seasonal lull, which typically reinforces the choppy, high-resistance environment currently observed.
The Dow Jones and the S&P 500 reached record levels on Wednesday, rising 0.60% and 0.32% respectively during a short holiday session. Meanwhile, Silver pushed deeper into uncharted waters, crossing $74 thanks to rising industrial demand and a growing supply gap. Analysts believe the heavy use of solar panels, electric vehicles, and data centers is driving demand as supply struggles to keep up.
Trust Wallet Browser Extension Compromised
Trust Wallet’s browser extension has been compromised, leading to losses of around $6 million. Trust Wallet confirmed the breach, with reports claiming importing seed phrases into the wallet extension resulted in funds being drained. Blockchain investigator ZachXBT flagged the issue after multiple Trust Wallet users reported unauthorized outflows. ZachXBT identified that all the impacted users had installed the new Trust Wallet browser extension. Trust Wallet stated on X that the security incident impacted only version 2.68, and urged users to upgrade to version 2.69.
We’ve identified a security incident affecting Trust Wallet Browser Extension version 2.68 only. Users with Browser Extension 2.68 should disable and upgrade to 2.69.
Users have criticized the wallet service for its lack of transparency and for failing to provide a detailed post-mortem of the incident. However, Changpeng Zhao, former CEO of Binance, the entity that owns Trust Wallet, confirmed all affected users will be compensated. Many users have speculated that the incident could have been an inside job.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) returned to positive territory on Boxing Day after registering a small, albeit noticeable decline on Christmas. The flagship cryptocurrency registered a marginal increase on Wednesday but lost momentum on Thursday, dropping 0.50% to $87,171. However, momentum returned on Friday as the price briefly reclaimed $89,000 before moving to its current level.
Despite the Boxing Day recovery, market sentiment remains cautious, with the Fear & Greed Index at 27, putting it firmly in “Fear” territory. Meanwhile, the Altcoin Season Index sits at 16, indicating that Bitcoin Season still dominates the market. Bitcoin’s support levels continue to show strength, drawing buyers every time they are tested. The strong support at lower levels has kept Bitcoin above $86,000 and reinforced market confidence. However, recent spot Bitcoin ETF outflows have dampened investor sentiment. According to data from Coinglass, spot Bitcoin ETFs have recorded five consecutive days of outflows.
The investment products registered $142 million in outflows on Monday, followed by another $188 million on Tuesday. Christmas Eve saw spot Bitcoin ETFs register another $175 million in outflows, continuing to exert pressure on BTC’s price action.
Despite the outflows, Bitcoin’s technical structure is intact as the price stays above its short-term support, keeping expectations of a move past $90,000 alive. However, the flagship cryptocurrency must decisively clear $90,000 to regain bullish momentum. If BTC breaks above this level, it could target $95,000. However, if sellers push the price below $86,000, it could retreat and trade between $82,000 and $84,000. However, analysts expect BTC to remain between $86,000 and $90,000 until the new year.
BTC started the previous week in bearish territory, dropping 1.99% to $86,417. However, it recovered on Tuesday, rising 1.66% to reclaim $87,000 and settle at $87,854. The price reached an intraday high of $90,336 on Wednesday but lost momentum after reaching this level and settled at $86,209. Bitcoin bulls made another attempt to breach the $90,000 ceiling as the flagship cryptocurrency reached an intraday high of $89,447. However, selling pressure at upper levels forced BTC into a retreat as it settled at $85,460, down almost 1%. Despite the overwhelming selling pressure, BTC recovered on Friday, rising over 3% to $88,092.
Source: TradingView
Price action remained positive over the weekend as BTC registered marginal increases on Saturday and Sunday, settling at $88,639. The flagship cryptocurrency reached an intraday high of $90,541 on Monday. However, it lost momentum after reaching this level and settled at $88,556, ultimately registering a marginal decline. Selling pressure persisted on Tuesday as the price fell by over 1% to $87,429. BTC registered a marginal increase on Wednesday but lost momentum on Thursday, dropping 0.50% to $87,171. The price is up almost 2% during the ongoing session, trading around $88,692.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.