Bitcoin prices steadied on December 26 after a volatile intraday session, reflecting a market caught between short-term technical pressures and longer-term structural support. As of 10:20 a.m. IST, the world’s largest cryptocurrency was trading at $88,970.24, up 1.41 percent on the day and 2.26 percent over the past week. The price swung between a low of $86,897 and a high just above $89,188 during the morning session, underscoring the fragile balance currently defining crypto markets.

The final week of December is typically characterised by thin trading volumes across global asset classes, and cryptocurrencies are no exception. Institutional desks scale back risk, retail participation softens, and price movements are often exaggerated by derivatives positioning rather than fresh spot demand. This year, the effect is magnified by the sheer size of outstanding crypto derivatives.

According to market participants, roughly $28 billion worth of crypto options are set to expire, including $23.7 billion in Bitcoin contracts. Such large expiries often distort price action as market makers hedge exposures and attempt to pin prices near key strike levels.

Market participants noted a sharp intraday rebound after Bitcoin briefly dipped below $87,000. CoinSwitch’s Markets Desk said Bitcoin bounced around 1.6 percent from the $87,000 zone toward $89,000, but warned that price action could remain volatile and largely sideways until the options expiry passes.

The desk highlighted that hedging activity could keep Bitcoin confined near key technical levels in the near term. While a quick dip to trigger stop-losses cannot be ruled out, historical patterns suggest large expiries tend to be neutral-to-bullish once the associated pressure fades. Immediate support is seen near $87,000, with resistance around $89,000.

Mudrex echoed a cautiously optimistic view. Its Lead Quant Analyst, Akshat Siddhant, said Bitcoin has shown renewed strength, rising nearly 3 percent in a short span as broader risk sentiment improved. He described the move as resembling a delayed “Santa Rally,” with buying interest returning across major assets. However, he stressed that sustained volumes are necessary to confirm any meaningful trend reversal. A decisive break above the $89,700 level could set the stage for a rally toward the psychologically important $100,000 mark, while $87,000 now acts as a critical downside anchor.

For investors, the current phase is less about directional conviction and more about positioning. The range-bound behaviour highlights how Bitcoin is increasingly influenced by liquidity conditions, derivatives flows, and institutional activity rather than retail-driven narratives.

Riya Sehgal, Research Analyst at Delta Exchange, pointed out that Bitcoin’s post-election rally was led largely by leveraged flows and ETF inflows rather than spot demand. On the four-hour chart, Bitcoin continues to trade below its 200 EMA, with resistance between $89,800 and $90,500 and support in the $87,800–$86,800 zone. This technical compression suggests that a strong directional move is unlikely without a fresh influx of capital.

Volatility was evident across major tokens as well. Over the past 24 hours, Ethereum rose 1.63 percent, XRP gained 1.33 percent, Solana edged up 0.13 percent, while Cardano slipped 1.95 percent. Stablecoin Tether remained largely flat. According to CoinDCX’s research team, the market continues to rotate selectively, with sharp gains in smaller tokens such as DoubleZero and Maple Finance, while others posted steep declines. This dispersion reflects speculative trading rather than broad-based risk appetite.

Nischal Shetty, Founder of WazirX, noted that recent global macro developments have reinforced the deepening link between crypto markets, monetary policy expectations, currency movements, and overall liquidity. As central banks signal caution on rate cuts and global liquidity remains uneven, crypto assets are increasingly behaving like macro-sensitive instruments rather than isolated alternatives.