Bitcoin (CRYPTO:BTC) traded in a narrow range on Dec. 21, hovering just below the psychological $90,000 level as traders weighed the balance between recovery momentum and persistent resistance.
The world’s largest cryptocurrency recorded a subdued 24-hour trading range, signalling market indecision despite a sizeable daily trading volume of $18.29 billion.
Market participants appeared cautious after recent volatility, with sideways price action reflecting a pause rather than a decisive shift in sentiment.
Bitcoin’s daily chart showed the asset stabilising after a sharp decline from roughly $96,538 to lows near $80,537 earlier this month.
Higher lows have gradually formed, suggesting buyers are defending key support zones despite the absence of strong bullish conviction.
Price action has consolidated between $86,000 and $90,000, creating a tightening range that analysts view as a potential prelude to a breakout or breakdown.
The relative strength index stood at 46, reinforcing the view that momentum remains neutral rather than overbought or oversold.
The moving average convergence divergence indicator showed early signs of positive divergence, though it has yet to translate into sustained upside pressure.
Short-term moving averages, including the 10-period EMA and SMA, continued to support current price levels.
Longer-term moving averages from the 20-period through to the 200-period remained above spot prices, forming a broad resistance band.
On the four-hour chart, Bitcoin has staged a measured rebound after a sharp liquidation move on Dec. 18 pushed prices from above $90,000 to near $84,400.
Subsequent higher highs and higher lows indicated structural recovery, though trading volume failed to confirm strong demand.
The stochastic oscillator and commodity channel index both reflected muted momentum, leaving room for interpretation among short-term traders.
Hourly charts showed tight consolidation between $88,000 and $89,000, underlining the market’s wait-and-see posture.
Weak momentum readings and low volume suggested Bitcoin was consolidating rather than preparing for an imminent surge.
Analysts noted that any breakout above $89,500 would require a clear increase in trading activity to be considered sustainable.
Structurally, Bitcoin retained elements of a bullish setup, with support around $86,000 acting as a key defensive level.
The $90,000 threshold continued to serve as a major psychological and technical barrier limiting further upside.
A confirmed close above $90,000 accompanied by strong volume would strengthen the bullish case and signal renewed momentum.
Conversely, failure at resistance combined with a drop below $85,000 could undermine the recovery narrative.
A deeper move below $84,000 would expose Bitcoin to the risk of an extended correction, analysts warned.
For now, traders appeared focused on range-bound strategies as the market awaited clearer confirmation of direction.
At the time of reporting, Bitcoin price was $88,030.52.