Bitcoin Consolidates Near Key Levels as Market Dynamics Shift Across Assets

December 29 brought significant market movement as Bitcoin demonstrated resilience while traditional safe-haven assets retreated. With BTC trading around $90.87K, the crypto space is witnessing renewed conviction among buyers as technical patterns suggest potential breakout conditions ahead.

Technical Setup Points to Potential Breakout

Bitcoin’s price action this week is shaping up to deliver one of the most significant monthly closes of the year. The formation of a dragonfly doji—a powerful reversal pattern in technical analysis—hints at aggressive dip-buying after recent consolidation phases. This candlestick setup typically signals that sellers attempted to push prices lower but faced overwhelming buyer interest, ultimately closing near opening levels.

Supporting this bullish narrative, BTC continues trading above its 21-month exponential moving average, a critical level that has repeatedly provided support throughout recent corrective phases. As long as this threshold remains defended, the underlying uptrend structure stays intact.

The price is currently anchored to a rising support zone that has proven resilient across multiple tests. The absence of a dramatic breakdown below this level is itself encouraging, suggesting institutional and retail buyers remain engaged at lower price levels.

Market Momentum Accelerates as Shorts Get Liquidated

A notable $2,600 rally over just four hours triggered substantial forced selling, with over $102 million in short positions liquidated across derivatives markets. This capitulation event coincided with total cryptocurrency market capitalization jumping $80 billion, reclaiming the psychologically important $3 trillion level.

The intensity of this move underscores that conviction buyers remain committed to supporting Bitcoin at key levels, potentially foreshadowing fresh all-time highs if this momentum persists.

Safe-Haven Rotation Reshapes Portfolio Positioning

Interestingly, Gold and Silver prices retreated during this same period, fueling speculation that portfolio managers and traders are rotating capital from traditional hedging assets into digital currencies. This reallocation could signal a shifting risk appetite in financial markets, with investors increasingly viewing Bitcoin not merely as speculative exposure but as an alternative to conventional safe-haven positions.

Silver Supply Crunch Maintains Spotlight

Beyond crypto markets, Silver has captured attention due to genuine supply constraints. China, which dominates 60–70% of global silver production, plans to restrict export flows beginning January 2026, effectively constraining availability for international markets. This development compounds a five-year structural deficit where demand has consistently outpaced supply.

Physical inventories are declining rapidly across major trading hubs—COMEX in the US, London, and Shanghai—while premiums have climbed accordingly. Industrial consumption from solar technology, electric vehicles, and consumer electronics continues accelerating, ensuring demand remains robust regardless of macroeconomic conditions.

This fundamental tightness contrasts with speculative rallies, suggesting the move reflects genuine scarcity rather than temporary enthusiasm.