Bitcoin’s $90K Breakout Pauses as Geopolitical Tensions Shake Markets

Bitcoin Rally Stalls Near $91,000 Amid Venezuela Conflict

Bitcoin’s attempt to break decisively above the $90,000 level stalled over the weekend as geopolitical developments injected uncertainty into thin holiday markets. The pullback came after reports of U.S. military action in Venezuela, which briefly pressured risk assets while traditional financial markets remained closed.

BTC peaked near $90,940 on Bitstamp before reversing, slipping below $90,000 as traders reacted to escalating headlines out of Caracas.

Geopolitical Headlines Trigger Short-Term Selling

According to reports shared over the weekend, the U.S. launched airstrikes in Venezuela’s capital, followed by a statement from President Donald Trump claiming that Venezuela’s president had been captured and removed from the country.

With equity markets shut and liquidity reduced, Bitcoin absorbed much of the initial reaction.

Market analysts characterized the move as a short-term risk response rather than a structural shift in trend.

“We’re seeing some near-term selling pressure tied to the U.S. action in Venezuela, but the broader setup remains constructive,” said analytics account @Wealthmanager on X.

The analyst added that if tensions do not escalate further, the dip could represent a temporary pullback rather than the start of a reversal, maintaining upside targets between $96,000 and $100,000 in the days or weeks ahead.

CME Futures Close Adds Technical Significance

One factor supporting the bullish case is Bitcoin’s weekly close on CME Group’s futures market. BTC futures ended the week above $90,000, potentially creating a new CME gap — a technical feature traders often expect price to revisit.

Several analysts noted that the return of traditional market participants when futures reopen could be decisive for near-term direction.

“There’s a lot of geopolitical tension right now, and next week the big players return,” said crypto analyst Lennaert Snyder, pointing to the likelihood of increased volatility once institutional flows resume.

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Key Technical Levels Remain Intact

Despite the pullback, multiple traders emphasized that Bitcoin’s broader structure remains bullish as long as critical support levels hold.

Crypto trader Michaël van de Poppe described the move as a “classic geopolitical reaction,” noting that Bitcoin has historically recovered from similar events.

He highlighted the 21-day moving average, currently around $87,850, as a key level to watch.

“As long as Bitcoin remains above the 21-day MA, the direction for January remains higher,” he said.

Bitcoin Begins to Outperform Gold

Beyond short-term price action, traders are also watching Bitcoin’s relative strength against gold.

Gold reached a record high of $4,551 per ounce on Dec. 26 before pulling back as much as 6%, while Bitcoin gained roughly 5% over the same period.

“This is worth paying attention to,” said market analytics group Bull Theory, noting that previous Bitcoin parabolic rallies began shortly after gold topped.

“If gold has already peaked, we could be seeing the early stages of capital rotation from gold into Bitcoin,” the group said.

Gold finished 2025 as the best-performing major asset, while Bitcoin lagged despite setting new all-time highs in October — a divergence some investors now see beginning to narrow.

Outlook: Volatility Now, Direction Decided Soon

Bitcoin’s failure to immediately reclaim $90,000 reflects heightened sensitivity to geopolitical risk during low-liquidity conditions. However, market participants broadly agree that the medium-term trend remains intact if support near $88,000 holds

and institutional participation resumes next week.

With futures markets reopening and macro headlines evolving, the coming sessions are likely to determine whether Bitcoin’s pause becomes a consolidation — or the launchpad for a renewed push toward six-figure territory.

See all our insights: Bitcoin World News