Bitcoin’s recent rally at the start of the new year appears to be losing momentum, raising concerns that the leading cryptocurrency may soon dip below the critical $90,000 mark. After a positive kickoff to 2026, when Bitcoin almost reached $95,000, the bullish enthusiasm has diminished significantly. Notably, Bitcoin has struggled to maintain its position above the $90,000 threshold, failing to do so on three separate occasions since November 2025.
The prevailing sentiment among traders has shifted towards bearishness, with many now viewing the New Year rally as a potential “bull trap.” Recently, bulls have faced disillusionment, realizing that the recent upswing might not signify a true trend reversal. Analysts note that unless the price breakout is supported by strong momentum, the bullish structure could be invalidated, leading to further price declines.
Adding complexity to the market landscape, Morgan Stanley has recently filed for the creation of a Solana exchange-traded fund (ETF). This move indicates the investment bank’s increasing involvement in cryptocurrency, as it also submitted paperwork for a Bitcoin ETF, joining other significant market players like BlackRock. The Solana ETF is designed to reflect the performance of SOL, the native digital asset of the Solana blockchain, and will utilize third-party custodians to securely hold the asset. The anticipated staking of SOL to earn rewards could positively impact the fund’s net asset value.
In a separate but related development, the Shiba Inu (SHIB) token briefly saw a price surge, eliminating another zero to reach the $0.00001 level. However, this upward movement was short-lived, as the price quickly reversed, reflecting a lack of sustained support for the rally. The spike was propelled by a sudden influx of buying pressure that allowed SHIB to surpass its crucial 100-day exponential moving average, a significant resistance level that had previously constrained its price movements.
Despite the excitement surrounding XRP, a prominent cryptocurrency, legendary market technician John Bollinger has cautioned investors against overestimating its recent sharp rally. While XRP has seen a strong lift and increased by approximately 32% since the start of January, Bollinger emphasizes that its underlying technical pattern remains weaker compared to Bitcoin and Ethereum. He warns that distinguishing a brief surge from a robust structural strength is crucial for making informed trading decisions.
In a notable shift, Bitcoin has reportedly printed its first red year in a post-halving cycle, which typically follows an optimistic four-year pattern. Having reached an intraday high of $91,764, Bitcoin has caught traders’ attention as they speculate on future price movements. Currently, Bitcoin is trading at $91,192, up 1.72% over the past 24 hours.
Overall, the cryptocurrency market is experiencing a complex interplay of bullish and bearish sentiments, influenced by recent developments in ETFs, trading patterns, and the evolving dynamics of various tokens. As volatility persists, analysts and traders are on high alert, monitoring key price levels and market responses in the coming days.
