Crypto Market Analysis 11 December 2025: Will Bitcoin Crash to $88,000 Next?
- Bitcoin has rejected the $94,000 level and dropped to approximately $89,550 with technical indicators signaling a short-term bearish trend
- A spike in Open Interest combined with falling prices indicates aggressive shorting activity as traders bet heavily on further declines.
- Critical support lies at $89,300 while resistance is firm at $90,500 with experts warning of potential volatility due to crowded short positions.
Bitcoin has entered a sharp corrective phase after being firmly rejected near the $94,000 region and is currently trading around $89,550 as of December 11. The market structure has shifted decisively toward a short-term bearish bias following a breakdown of key local support levels on the 15-minute charts. Price action currently shows a pattern of lower highs and lower lows which indicates that sellers are in control and any attempt at a recovery is being met with swift selling pressure. The current consolidation near the $89,500 mark appears to be a weak pause in momentum rather than a genuine reversal and volumes have picked up during the downward moves to validate the strength of the bearish trend.
The derivatives market is flashing warning signals that support this negative outlook as Open Interest has spiked vertically while prices continue to fall. This specific combination of rising capital commitments and falling prices suggests that traders are aggressively opening new short positions to bet on further declines. Funding rates have dipped into negative territory which confirms that the short side of the market is becoming crowded and is now paying the long side to keep their positions open. This data points to a scenario where new money is chasing the price down rather than long-term holders simply selling their assets.
Looking ahead the immediate floor for Bitcoin sits between $89,300 and $89,400 and a high-volume break below this zone could trigger a rapid drop toward the $88,000 level to grab liquidity. Resistance has formed firmly at $90,500 and $91,200 where trapped buyers are likely to sell to break even. Fund managers are advising extreme caution and warning traders not to try and "catch the falling knife" by buying too early. While the trend favors the bears the high concentration of late short positions also increases the risk of a sudden short squeeze that could temporarily whip prices higher to flush out overleveraged traders.