Bitcoin News Today: BTC Holds Above $88,000 as Leverage Resets Shape Market Moves

Bitcoin remained above $88,000 after recovering from earlier losses, as price action stabilized alongside calmer derivatives activity. The move followed a rebound from the $85,500 area, where buyers stepped in after a period of selling pressure.

BTC crossed the $87,000 and $87,200 price levels, indicating that the subsequent price recovery had the 50% Fibonacci retracement level of the slide from the $89,484 peak to the $86,611 trough. Then, the price reached $88,000 and stayed above the 100-hour simple moving average.

While Bitcoin's price was fluctuating, the bulls were around $88,750, acting as resistance. This level coincides with the 76.4% Fibonacci retracement and a bearish trendline forming on the hourly BTC/USD chart. The next resistance is at point $89,500, followed by $89,800.

If the price breaks out above $89,800, the way to $90,200 and $90,500 will be opened. If the price continues to rise, the higher levels around $91,500 and $92,000 will be maintained. On the other hand, if the price doesn’t stay at current levels, the downside zones will be well-defined.

Derivatives Data Shows Heavy Leverage Swings

Derivatives data offers context for the recent recovery. A CryptoQuant chart tracking 24-hour changes in BTC open interest across exchanges shows sharp shifts in leverage during late November and December. The data combines price action with open interest movements on Binance and Bybit.

From November 22 through December 28, Bitcoin traded between $84,000 and above $93,000. Early in the period, BTC rebounded from the mid-$84,000 range. Price climbed steadily toward $90,000 while open interest readings fluctuated around neutral levels.

In late November, Binance recorded a sharp decline in open interest that approached -$1.6 billion. The drop coincided with a brief price dip near $85,000. The move reflected significant reductions in position during downside volatility.

Open interest later rebounded as Bitcoin surged toward the $92,000 to $93,000 area in early December. Positive dollar and percentage changes appeared across Binance data, signaling renewed leverage exposure. Bybit open interest followed the same direction, though with a smaller magnitude.

Support and Resistance Define Short-Term Risk

Mid-December marked another shift. Bitcoin rolled over from levels above $91,000, and open interest turned negative again across both exchanges. Binance showed renewed dollar-denominated reductions, while percentage changes moved lower. The price slid toward the $86,000 to $87,000 range during the same window.

The situation in December saw open interest return to a neutral position indeed. The bars formed right above and below the zero line, indicating that leverage was being built up slowly and that less risk was being taken. Bitcoin tried to bounce back to $89,000 but couldn’t regain its previous highs.

If Bitcoin does not break through the $89,500 resistance area, the sellers will retrace the market. The first support level is around $88,000. The next support is around $87,250.

Beneath this level, support is there around $86,500. The price might head to $85,500 in the near term if no support is found. The strongest point of support is at $84,500, where the price could drop further. Technical indicators picture the short-term strength.

The three primary resistance levels remain at $88,750 and $89,500. Meanwhile, the primary support levels are at $88,000 and $87,250.

Also Read: Bitcoin Price at $90,015, Ethereum Tops $3,033, Solana Jumps 3.5%

Conclusion

Bitcoin price held above $88,000 after rebounding from $85,500 as key technical levels and leverage data aligned. Derivatives activity cooled following sharp swings in November and December, while resistance near $89,500 and defined support zones continue to guide near-term market direction.