Bitcoin (BTC) briefly tried a “Santa Rally” on December 25, in an attempt to break the $100,000 barrier. The attempt did not materialize as expected, and the cryptocurrency has fallen below $97,000. The fall made short-term holders question if the asset would recover anytime soon.
Market sentiment around Bitcoin remains bearish. Data from IntoTheBlock highlights a decline in activity among short-term holders—those who keep BTC for 30 to 365 days. This group often reflects market optimism, but their reduced involvement signals growing uncertainty.
The bearish outlook is again supported by the fact that Glassnode’s STH-NUPL metric moved into the “hope or fear” zone, where the short-term investors are doubting the rebound of Bitcoin. If this trend continues, then BTC will likely face continued downward pressure.
Technically, Bitcoin faced resistance at $99,332, which barred its advance to $108,398. The Relative Strength Index has also broken below 50, indicating bearish momentum. According to analysts, the continuation of the uptrend could see it fall further to $85,851.
For a recovery, BTC must break above $99,332. If successful, the cryptocurrency might aim for $110,000. Until then, short-term holders and investors remain cautious, watching for clearer signals of a trend reversal.
