Bitcoin is unable to escape flat even as downtrend breaks

Bitcoin (BTC) has been locked in a flat for over a month now, confined to the $85,000–$93,000 range. After November’s steep fall, hopes for a strong rebound have largely fizzled out. Even breaking free from the downtrend extending from October’s peak did little to jolt the top crypto out of its slump. As BTCUSD consolidates with no end in sight, the smart play may be to position for a range swing, betting on a bounce from support to resistance.

Technically, the odds favor a retreat from the $93,000 ceiling. This level is reinforced by the converging 50-day moving average and the upper Bollinger Band, which together form a stiff cap on upside moves. The Stochastic Oscillator is primed to issue a sell signal, while the RSI hovers in neutral land, giving room for the price to head either way. Upon seizing the initiative, bears will likely set their sights on the $85,000 range floor, which coincides with the former downtrend line—adding extra weight to that support. 

Lately, the crypto market has been pushed to the sidelines as the buzz around artificial intelligence (AI) firms and precious metals steals the show. They are now soaking up the capital exiting Bitcoin and other digital assets, thus leaving the token at risk of ending 2025 in negative territory—hardly appealing when tech stocks, gold, and silver are posting eye-popping returns.

On top of that, during periods of gloom, BTCUSD has often been propped up by large investors buying the dip and going long. However, this typical support is nowhere to be found. In the first half of December, so-called "whales" holding between 10,000 and 100,000 BTC collectively sold $3.5 billion worth of the crypto. In this environment, retail traders face an uphill battle going against the market’s heavyweights, as any attempt to reverse the slide could quickly lose steam.

The plan down below may be relevant for your trading:

Sell BTCUSD in the $88,000–$90,000 range. Lock in profits at $85,000. Place Stop loss at $93,000.