Liquidity concentration and profit-taking at psychological milestone trigger broad market pullback.

SINGAPORE | December 29, 2025 — Bitcoin faced a sharp rejection on Monday after briefly ascending past the $90,000 mark during the Asian trading session, leading a wider retreat across the digital asset sector.

The move above the $90,000 threshold, which market participants described as a significant psychological and technical barrier, was short-lived. Prices retreated to intraday lows near $87,500 as sell-side pressure intensified in the European morning hours.

Market data reviewed by this publication indicates that the rejection was characterized by a heavy concentration of ask orders situated just above the $90,000 handle. This liquidity wall effectively capped the rally, forcing a cascade of deleveraging among short-term speculators.

MOST MARKET-MOVING EVENTS:

According to market participants, the day’s price action reflected a massive concentration of sell orders at the $90,000 psychological resistance and a subsequent spike in long liquidations as the price dipped below $88,500.

The initial surge in Asia also pulled major altcoins higher, with Ethereum and XRP recording brief gains of 4% and 6% respectively. However, as Bitcoin lost its momentum, these assets mirrored the downward trajectory, erasing most of their daily gains by the start of the London session.

Traders in Singapore noted that the surge to $90,000 appeared to be driven by aggressive spot buying on major exchanges, though this was not met with sustained follow-through in the derivatives market. High funding rates on perpetual futures suggested a crowded long trade that was vulnerable to a correction.

Funds in London adjusted exposure as the price failed to maintain its footing above the $89,500 level. Industry sources noted that the speed of the retracement caught several momentum-following algorithms off guard, contributing to the volatility observed in the mid-morning hours.

MARKET DATA SNAPSHOT:

Data reviewed by this publication shows shifts in spot and derivatives activity among major digital assets, highlighting changes in liquidity and positioning. Open interest in Bitcoin futures remained high despite the 3% price drawdown from the peak.

Institutional flows into spot Bitcoin exchange-traded funds (ETFs) remain a focal point for the market. While recent days have seen consistent inflows, the exhaustion at $90,000 suggests that some large-scale holders may be using these price levels to realize gains after a sustained multi-week rally.

The global macroeconomic environment continues to weigh on risk assets. Market participants said that a slight hardening of the US Dollar Index (DXY) earlier today provided a headwind for Bitcoin, making the attempt to hold the $90,000 level more difficult for bulls.

Analysts in New York said the rejection does not necessarily signal an end to the current trend but highlights the significant friction at round-number milestones. They pointed to the exhaustion of buy-side liquidity as the primary driver for the immediate cooling of the market.

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Order book depth across top-tier exchanges remains fragmented. A review of exchange heatmaps shows that while support is building around the $86,000 zone, the overhead resistance remains thick up to $92,000, suggesting a period of consolidation may be required before another attempt at the highs.

The impact on the decentralized finance (DeFi) sector was also evident, as collateral liquidations on lending platforms ticked upward during the price dip. This volatility underscores the interconnected nature of the digital asset ecosystem when the primary market mover experiences a sharp reversal.

Regulatory developments in the US and EU have remained relatively quiet today, leaving price action to be dictated primarily by technical factors and large-scale whale positioning. The lack of a fundamental catalyst for the rejection suggests it was a “technical correction” in an overheated market.

As the US market opens, attention is shifting to whether the $88,000 level can be reclaimed as support. Failure to do so could see further testing of the $85,000 range, which has previously served as a zone of significant institutional interest.

In summary, the rejection at $90,000 has introduced a pause in the recent momentum. The market now waits for the next phase of institutional participation to determine if this pullback is a temporary consolidation or the beginning of a deeper correction.

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Disclaimer: Crypto assets are volatile and involve risk. This content is published for informational purposes only.

AUTHOR BOX
Global Markets Desk | DECODE THE CRYPTO covers global cryptocurrencies, regulation, and digital finance with an institutional and macroeconomic focus.

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