Bitcoin continues on a stagnant path after failing to reclaim the pivotal $90,000 mark, with analysts predicting that the cryptocurrency may remain trapped in its current range until early next year. Observers believe that this period of consolidation will culminate in a critical turning point for Bitcoin’s price.
As of Christmas Eve, Bitcoin was trading between $86,000 and $87,000, marking a continuation of its sideways movement. The digital asset has been largely confined to a range of $80,000 to $94,000 since facing a correction in late November. Despite previous attempts to break this one-month range, Bitcoin’s price has stabilised near the mid-point, oscillating between $84,000 and $90,000 for nearly two weeks.
Analyst Ted Pillows expressed concerns that without a firm reclaim of the $90,000 resistance, Bitcoin risks re-evaluating the $84,000 support level. If neither the support nor resistance is breached, the cryptocurrency is expected to stay within this limited range until market momentum resurfaces. Echoing this sentiment, trader Daan Crypto Trades noted that December has been relatively uneventful, characterized by sporadic price fluctuations and the absence of major developments or narratives in the broader crypto market. He remarked that both Bitcoin and Ethereum have remained relatively stable while other altcoins have struggled.
Despite Bitcoin reaching new highs this quarter, Daan critiqued the overall performance of the cryptocurrency throughout the year, describing it as disappointing in terms of risk-adjusted returns. However, he posited that this period of low activity might contribute to a more balanced distribution of Bitcoin among holders, which could be beneficial in the long run.
Looking ahead, both analysts and traders anticipate that the first quarter of 2026 will be pivotal for Bitcoin. Daan underscored this timeframe as a potential proving ground for the cryptocurrency, where its performance could ultimately determine whether the previous market cycle has concluded.
Analyzing potential outcomes for Bitcoin in early 2026, Pillows indicated that the cryptocurrency might be mirroring patterns from 2021 to 2022, suggesting a possible entry into a bear market. His analysis indicated a forecasted rally toward $100,000 before another downturn could see Bitcoin targeting the $60,000 to $70,000 range.
Conversely, Eljaboom highlighted the possibility that Bitcoin could replicate earlier movements observed in the current year. He pointed out a multi-month falling wedge formation in Bitcoin’s three-day chart, akin to patterns that led to previous rallies. If this historical trend holds, Bitcoin could revisit the formation’s lower boundary in the short term, leading to an eventual breakout and potential new highs by Q2 2026.
Currently, Bitcoin stands at $87,350, reflecting a 0.5% decline on the daily timeframe, leaving traders and investors watching closely for signals of the market’s next move.
