Bitcoin Price Analysis: BTC Struggles To Gain Momentum As Analyst Predicts $55,000 Bear Market Bottom
Bitcoin (BTC) is struggling to regain momentum after falling to a low of $83,800 on Monday. The flagship cryptocurrency has started December in the red after enduring its worst November since 2018.
Meanwhile, a crypto analyst has said that RSI and Bollinger Bands data suggest BTC’s bear market bottom is at $55,000.
Strategy Sets Up Cash Reserve, Discloses Bitcoin (BTC) Purchase
Michael Saylor’s Strategy has established a $1.44 billion US Dollar reserve to support dividend payments on its preferred stock and interest on outstanding debt. The dollar reserve is funded through proceeds generated by the sale of the company’s Class A common stock under its at-the-market offering program. The company stated in a press release,
“Strategy’s current intention is to maintain a USD Reserve in an amount sufficient to fund at least twelve months of its dividends, and Strategy intends to strengthen the USD Reserve over time, with the goal of ultimately covering 24 months or more of its dividends.”
The company also announced the purchase of 130 BTC for $11.7 million, taking its total holdings to 650,000 BTC, acquired at a cost of $48.38 billion. According to Strategy, the Dollar reserve will be the primary source of funding dividends to preferred stock holders, along with debt and equity holders.
“We believe this improves the quality and attractiveness of our preferreds, debt, and common equity.”
Strategy founder and executive chairman Michael Saylor called the reserve the next step in the company’s evolution, stating,
“Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution.”
Tom Lee Revises Call For Bitcoin All-Time High
BitMine Immersion Technologies chairman Tom Lee has adjusted his Bitcoin (BTC) prediction again as 2025 draws to a close. Lee had initially tipped Bitcoin to hit $250,000 by the end of 2025. However, he walked back his prediction last week, stating that Bitcoin could “maybe” regain its all-time high by the end of the year. Lee adjusted his prediction in a recent interview, stating BTC could reclaim its all-time high in January. Lee stated,
“I do think Bitcoin can make an all-time high by the end of January. A lot of it’s gonna depend on equities recovering, which we expect it to.”
Meanwhile, Jeff Dorman, chief investment officer of digital asset investment firm Arca, stated there is no real reason why the cryptocurrency market has been in the doldrums. Dorman highlighted bullish fundamentals across the markets in a post on X, stating,
“Wall Street is seeing all of the same bullish signs that I’m seeing — equity, credit, and gold/silver markets are launching to ATHs every month because the Fed is cutting rates, QT is ending, consumer spending is strong, record earnings, AI demand is still incredibly strong, etc. Meanwhile, all of the ‘supposed reasons’ for crypto selling off are easily debunked, or have reversed — MSTR isn’t selling, Tether isn’t insolvent, DATs aren’t selling, NVDA isn’t blowing up, the Fed isn’t turning hawkish, the tariff wars aren’t restarting, etc.”
Dorman speculated that liquidity issues could be hurting prices and investor sentiment.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) registered a sharp drop on Monday, plunging to a low of $83,000 as selling pressure intensified. However, it reclaimed $86,000 and settled at $86,282. The flagship cryptocurrency is up over 1% during the ongoing session, trading around $87,387.
BTC’s inability to reclaim and close above $90,000 invalidated confirmation of a bullish reversal. Analysts believe spot liquidity and weak order book depth are the key reasons behind BTC’s lacklustre price action. However, there is a dense cost-basis cluster around $84,000. Over 400,000 BTC were acquired at this level, effectively forming an on-chain floor. However, active buying pressure between $84,000 and $90,000 is absent, and many short-term holders remain underwater relative to their average entry of around $104,000, leaving the market in a low-liquidity zone.
According to CryptoQuant data, the Binance “Bitcoin to Stablecoin Reserve Ratio” has fallen to its lowest level since 2018, implying an unprecedented buildup of stablecoins ready to buy BTC. Historically, such extreme stablecoin-to-BTC ratios often precede major rallies. While spot demand remains weak, the stablecoin ratio indicates buying power on hand, but it is currently sitting idle.
BTC started the previous weekend in bearish territory, dropping to a low of $80,524 on Friday before rebounding and settling at $85,068. Sellers retained control on Saturday as the price fell 0.45% to $84,684. Despite the overwhelming selling pressure, BTC recovered on Sunday, rising 2.51% to reclaim $85,000 and end the weekend at $86,808. The price continued pushing higher on Monday, rising 1.68% to $88,266. However, selling pressure returned on Tuesday as BTC fell 1.07% to $87,325. Bullish sentiment returned on Wednesday as the price rose nearly 4% to reclaim $90,000 and settle at $90,468.
Source: TradingView
Buyers retained control on Thursday as BTC rose nearly 1% to $91,316. The price reached an intraday high of $93,161 on Friday but lost momentum, settling at $90,902, ultimately dropping 0.45%. Price action remained bearish over the weekend with BTC registering a marginal decline on Saturday before dropping 0.50% on Sunday and settling at $90,369. Selling pressure intensified on Monday with BTC falling to an intraday low of $83,800 before settling at $86,282. BTC has recovered during the ongoing session, up over 1%, trading around $87,328.
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.