Bitcoin has stalled at the $92,000 resistance level, forcing the market into a pause rather than a breakout. Fresh data indicates price action is rolling over at the upper boundary of the recent trading range, reinforcing the idea that the crypto market is lacking conviction despite a short-term bounce.
Market Loses Steam as Key Drivers Go Quiet
ETF inflows remain far below mid-year peaks, volatility has collapsed to cycle lows, and seasonal optimism appears out of sync with hard data. Although December is widely perceived as a bullish month for crypto, historical returns are much more mixed than commonly believed.
Under the surface, positioning suggests traders are preparing for a contained market rather than an explosive trend. A tightening volatility band is forming around price, while the recent move toward $92,000 was met with immediate selling pressure.
Short-Straddle Strategy Delivers — But Much Lower Yield for New Entries
A previously highlighted Bitcoin short-straddle trade — selling the $70,000 put and $100,000 call for December 2025 expiry — has already seen its value decline sharply, signaling strong early performance. With implied volatility crashing in the past week, the same trade now yields significantly less.
Last week, the trade offered approximately a 31% annualized return. Today, that figure has dropped to about 12% annualized return. This reduced premium is directly tied to evaporating volatility, a sign that the market is pricing in a much narrower trading range.
The expectation is that Bitcoin will remain between $70,000 and $100,000 through year-end, but the reward for selling volatility has already been largely harvested.
Macro and Crypto-Specific Risks Back in Focus
The upcoming FOMC meeting remains a major inflection point. Even if the Federal Reserve initiates a rate cut in December, it is expected to be a “hawkish cut” — a policy move intended to slow the economy rather than stimulate risk assets.
At the same time, the market is showing sensitivity to crypto-native fear cycles. A viral post by analyst Crypto Rover highlighted that recurring Tether-related FUD has historically coincided with Bitcoin market bottoms. Despite renewed speculation about Tether’s backing circulating online, these narratives tend to trigger panic-selling that allows large buyers to accumulate.
Tether FUD usually marks the bottom for Bitcoin. FUD exists for one reason: to make you panic-sell so big players can accumulate your assets. Also, Tether is one of the most profitable companies on the planet. That alone is enough to attract haters, skeptics, and non-stop… pic.twitter.com/uoFR5t7iDj
— Crypto Rover (@cryptorover) December 1, 2025
This reminder has gained traction across social platforms as the mood remains tense.
What Comes Next
For now, Bitcoin’s sell-off is limited, down only 1.8% in the past week, but the absence of momentum is becoming hard to ignore. Cooling volatility, weak ETF flows, and uncertainty around U.S. monetary policy suggest that the recent bounce could remain corrective rather than impulsive.
Traders positioning for a violent breakout may need to reconsider their expectations. The market appears stuck in a structural tug-of-war: enough fear to suppress rallies, but not enough confidence to drive sustained selling.
The report titled “Bitcoin Rejected at the $92,000 Level – Our BTC Short Straddle Is Working” provides further insights. Additional sections are available in recent briefings, and the full report can be accessed via the link in their bio.