Bitcoin’s Wild Ride: Is It Bullish or Just Bull? 🐂💰

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Key Highlights

  • Bitcoin derivatives have experienced a delightful 2% surge in open interest, as traders play the high-stakes game of leverage near the tantalizing $90,000 mark.
  • A rather theatrical 3-day bullish divergence has graced our technical charts, hinting at a potential market bottom and a shift towards that elusive upside momentum.

Ah, the early whispers of a resurgent bull market for Bitcoin (BTC) are emerging, much like a phoenix rising from the ashes-or perhaps more accurately, like a cat with nine lives. The derivatives markets are positively buzzing with activity while the price waltzes around the $90,000 level. Despite this market consolidation that feels a tad like waiting for a kettle to boil, it appears some traders are gearing up for a fourth-quarter breakout-how riveting!

According to the ever-watchful analytics firm Glassnode, the open interest on perpetual futures has climbed from a modest 304,000 to a rather impressive 310,000 BTC. This delightful ascent follows a 2% price rise as BTC gracefully resumed its position above $90,000 earlier this week. Meanwhile, funding rates on major exchanges have soared from a mere 0.04% to a staggering 0.09%, suggesting long investors are now paying a premium for the privilege of remaining optimistic.

With price once again above $90K, perpetual open interest has risen from 304K to 310K BTC (~2% increase), while the funding rate has heated up from 0.04% to 0.09%.

This intoxicating combination signals a renewed fervor in leveraged long positioning, as perpetual traders prepare for a potential…

– glassnode (@glassnode) December 22, 2025

According to Glassnode, this risqué tango of rising open interest alongside elevated funding often suggests a sentiment leaning deliciously towards the upside. How utterly charming!

BTC Price Action: Testing Resistance

At the time of this grand writing, Bitcoin was trading at precisely $90,012, boasting a 2.23% gain over the last 24 hours. The cryptocurrency’s market cap stands at a staggering $1.79 trillion, an increase of 2.21%, while its 24-hour trading volume is a jaw-dropping $28.46 billion. Truly, a feast for the senses!

The circulating supply hovers near 19.96 million BTC, inching ever closer to its maximum cap of 21 million BTC, indicating a highly coveted and actively traded asset. The price action reveals BTC bouncing decisively from the major demand zone between $85,000 and $86,000, where buyers have heroically stepped in to absorb selling pressure. This rebound has allowed Bitcoin to reclaim a former consolidation range, now acting as a support around $87,600 to $88,500. Bravo!

However, this upward momentum faces more resistance than a celebrity at a paparazzi party near $90,200-$90,500, aligning beautifully with horizontal resistance and the descending 200-period moving average, currently lounging near $91,100. This zone has been a notorious capper of multiple recovery attempts in recent sessions, making it a critical level for trend confirmation. Oh, the drama!

Momentum indicators maintain a rather constructive demeanor. The four-hour Relative Strength Index (RSI) flirts around 66, suggesting bullish momentum without yet entering that scandalous territory of overbought conditions.

Key Technical Levels to Watch:

  • Immediate resistance: $90,200-$91,100 (200 MA zone)
  • Breakout confirmation: Sustained move above $91,200
  • Near-term support: $88,000-$88,500
  • Major demand zone: $85,000-$86,000

As long as Bitcoin remains above this reclaimed support, the broader structure favors consolidation with a bullish flair-how delightfully optimistic!

Bullish Divergence Indicates a Potential Bottom

Crypto analyst Ted Pillows has uncovered a key signal on the higher time frame. In a rather enlightening post on December 22, he mused:

“$BTC 3D bullish divergence is now confirmed… When this occurred the last two times, Bitcoin formed a bottom.” How utterly prophetic!

This bullish divergence, spanning three glorious days, shows that momentum indicators are increasing despite a flat price pattern; such a pattern has historically led to trend reversals and local bottoms on past Bitcoin cycles. This, of course, runs contrary to the recent Polymarket odds, where traders have placed an 83% probability on Bitcoin hitting $80,000 before it reaches the lofty heights of $150,000. A most intriguing conundrum!

$BTC 3D bullish divergence is now confirmed.

When this happened the last 2 times, Bitcoin formed a bottom.

– Ted (@TedPillows) December 22, 2025

Leverage Builds, Liquidation Risk Rises

While the market mood turns more cheerful, leverage builds like a fine soufflé, which may invite liquidation if BTC fails to find solid footing at these levels. A break below $87,000 might unleash a torrent of further liquidations, thanks to those pesky high funding rates. A rebuilt leverage will pave the way for even more abrupt and faster price changes in the short term-how exhilarating!

Indeed, the convergence of derivatives markets data, technical analysis, and expert opinion suggests that Bitcoin is likely at or near a critical turning point. Although we still await confirmation in the cash markets, the market perspective leans more favorably towards stabilization or recovery, rather than a downward spiral-if critical levels are held, of course!

As year-end liquidity declines and the number of leveraged positions rises, the next great momentum in Bitcoin might just be lurking closer than initially anticipated. How positively thrilling!

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2025-12-22 19:52