According to CryptoSlate, Bitcoin is encountering a "supply wall" between $93,000 and $120,000, which is acting as a ceiling for potential rallies. On December 17, Bitcoin experienced significant volatility, with a $3,000 surge followed by a collapse, resulting in substantial liquidations. Despite this, data suggests that leverage is not the primary driver. The actual constraint is structural, with overhead supply and options expiries pinning the price. A large number of coins are being held at a loss, and rallies are meeting sellers looking to reduce losses. The liquidation event on Dec. 17 reflects more coins overhead than patient capital willing to absorb them.

According to CryptoSlate, Bitcoin is encountering a "supply wall" between $93,000 and $120,000, which is acting as a ceiling for potential rallies. On December 17, Bitcoin experienced significant volatility, with a $3,000 surge followed by a collapse, resulting in substantial liquidations. Despite this, data suggests that leverage is not the primary driver. The actual constraint is structural, with overhead supply and options expiries pinning the price. A large number of coins are being held at a loss, and rallies are meeting sellers looking to reduce losses. The liquidation event on Dec. 17 reflects more coins overhead than patient capital willing to absorb them.