Market Overview
- •Bitcoin remains above the $90K mark despite concerns.
- •Rally is mainly fueled by short-covering, not new demand.
- •Weak spot buying and low liquidity hint at fragility.
Bitcoin has been making headlines after breaking the $90,000 barrier, a new all-time high. While this milestone signals bullish momentum on the surface, market watchers are warning that all may not be as strong as it seems underneath. Despite the impressive number, analysts are seeing signs that the rally lacks solid foundational support.
The primary concern? Weak spot demand. Spot markets, where actual Bitcoin is bought and sold, aren’t showing the kind of strong buying interest that typically supports sustained upward movement. Instead, the price action seems to be driven largely by short-covering—where traders who bet against Bitcoin are forced to buy back in as prices rise, pushing the price even higher temporarily.
Market Fragility and Liquidity Concerns
Another red flag is the low liquidity in the market. Liquidity refers to how easily assets can be bought or sold without causing drastic price swings. Right now, the market is thin, meaning even modest trades can move the price significantly. This creates a fragile environment where sudden corrections or volatility spikes become more likely.
If new buyers don’t step in and volume doesn’t pick up, the current rally may not have the staying power many are hoping for. It’s a reminder that while high prices can grab attention, what really matters is the strength of the market beneath those prices.
INSIGHT: $BTC is holding above $90K, but weak spot demand, low liquidity, and a rally driven mostly by short-covering raise doubts about its strength. pic.twitter.com/Sdf46h4E1O
— Cointelegraph (@Cointelegraph) November 28, 2025
Understanding the Rally's Drivers
While short-covering can kickstart rallies, it’s not a sustainable source of growth. Without fresh capital flowing in or real demand on the spot market, these kinds of rallies often lose momentum. Traders should be cautious and not confuse this rise with a strong, organic bullish trend.
Bitcoin has certainly impressed by staying above $90K, but investors should keep a close eye on market signals. For now, the rally may look exciting—but whether it’s built to last remains uncertain.