Bitcoin’s price held steady above $91,000 on Tuesday, reflecting a renewed optimism among traders and analysts that the lingering fourth-quarter sell-off may finally be in the rearview mirror. This resurgence follows significant momentum in the market, with some analysts declaring that Bitcoin and the broader digital asset markets have potentially reached a bottom.
In a note issued on Tuesday, analyst Gautam Chhugani and his team expressed confidence in the cryptocurrency’s recovery, indicating that the low point around $80,000 in late November was likely the bottom for Bitcoin. Bernstein analysts have weighed in on concerns that the October peak above $126,000 marked an end of a historical four-year cycle, asserting that such fears are exaggerated. They pointed to a current “digital assets revolution” that is extending the bull market.
The analysts maintained their bullish forecast, predicting that Bitcoin will reach $150,000 by 2026 and soar to $200,000 by 2027. They noted that despite Bitcoin experiencing a 6% decline in 2025, the overall market was still positive for crypto-related stocks and initial public offerings (IPOs). This indicates an ongoing institutional interest that is likely to support the cryptocurrency sector amid uncertainty.
Looking ahead, the emergence of a tokenization “supercycle,” driven by leading companies such as Robinhood, Coinbase, Figure, and Circle, is expected to further institutional adoption in the crypto space. Bitcoin has started 2026 with gains after a turbulent previous quarter, marking what some regard as the end of a downward trend. As forced liquidations and the selling tendencies of long-term holders contributed to a 35% drop from October highs, the recent price stability is a welcome change for investors.
Over the weekend, technical indicators from 10X Research suggested that Bitcoin has transitioned into a bullish phase. The cryptocurrency concluded December down for the third month in a row—an occurrence that has historically counted only 15 times and often precedes rallies in January.
Sean Farrell, head of digital assets at Fundstrat, highlighted the potential for a tactical rally, referencing the Federal Reserve’s balance sheet expansion and a reduction in the Treasury General Account, akin to the government’s checking account. According to Farrell, these developments signal an improvement in liquidity and fund flows, alongside Bitcoin’s recent outperformance compared to traditional equities.
While Farrell posited that Bitcoin could test the $105K to $106K range, he maintained a cautious stance that anticipates a substantial drawdown in the first half of the year before a potential rally toward the end of 2026. As the cryptocurrency sector navigates these fluctuations, the ongoing commitment from institutional investors and evolving market dynamics will play crucial roles in Bitcoin’s trajectory.
