Bitcoin pushes towards $90,000 mark
Over the past month, Bitcoin (BTC) has continued to navigate a choppy market environment characterised by competing institutional flows, macro uncertainty and evolving investor sentiment.
After Bitcoin’s over 30% sell-off from its $126,219.03 October record high towards the $80,000.00 support zone, Bitcoin range traded between $85,000.00 and $94,000.00 during December as traders awaited key macroeconomic data and positioned ahead of year-end.
Many observers attribute the early sell-off to heavy liquidations of overleveraged positions and thin liquidity typical of the start of a new month, which cleared out weaker holders and temporarily weakened price support.
Exchange-Traded Fund (ETF) flows have played an especially significant role in shaping Bitcoin’s near-term narrative. Recent data show a resurgence in spot Bitcoin ETF inflows, with institutional allocations rising alongside shifting signals from US rate expectations.
This revival – described by analysts as the “strongest inflows in weeks” – has helped underpin stability and suggested that some institutional capital is returning to BTC after a period of outflows and heightened volatility.
However, flows remain mixed: on some days outflows have reappeared, indicating profit-taking or cautious de-risking by some institutional participants.
Despite the return of inflows, broader macro conditions have continued to exert pressure. BTC has shown tentative resilience, but markets still reflect uncertainty about how supportive central-bank policy changes will be for risk assets longer term.
Bitcoin’s performance relative to other macro assets has also been notable. As markets price in potentially divergent rate paths – including speculative commentary on the Bank of Japan’s (BoJ) influence on global asset prices – analysts have suggested that geopolitical and policy developments could add volatility to BTC’s near-term outlook.
While some analysts predict a favourable environment for digital assets in 2026, with institutional adoption deepening, others caution that macro-driven declines remain possible if risk assets broadly come under pressure.
Against this backdrop, some long-term investors see the current price action as consolidation rather than the start of a new bear market. The stabilisation around key support levels and the reappearance of institutional flows via ETFs have been interpreted by some as indicators that confidence at deeper levels may be returning, even as volatility remains elevated and traders exercise caution.
Looking ahead, Bitcoin’s trajectory in early 2026 will likely be tied to a confluence of factors: how effectively it can reclaim resistance at recent highs, whether ETF flows maintain a net inflow trend, and how macroeconomic indicators influence broader risk sentiment.
As markets approach the end of the year, Bitcoin’s range-bound price action reflects a market in transition – one that continues to balance between consolidation, selective accumulation and the ever-present risk of renewed downside.
Bitcoin bullish case:
Bitcoin remains supported by the $85,000.00 region and is seen rising towards the minor psychological $90,000.00 level. It needs to break through its October-to-December downtrend line at $90,025.00 for the early December high at $94,213.50 to be back in the frame.
A daily chart close above $94,213.50 may free up the path to the psychological $100,000.00 region.
From a longer term perspective for the bulls to be back in control, the 11 November high at $107,461.75 would need to be exceeded, though.
Short-term bullish momentum is expected to remain in play while the 18 December low at $84,445.35 underpins on a daily chart closing basis.
Bitcoin bearish case:
While the 3 December high at $94,213.50 isn’t bettered on a daily chart closing basis, downside pressure may linger with the $85,500.00-to-$84,000.00 area possibly being revisited.
Failure at the early December $83,871.20 low would push the November trough at $80,619.71 to the fore.
Short-term outlook:
Bullish while above $84,445.35
Medium-term outlook:
Neutral while below the 9 December high at $94,635.34 but above the $80,619.71 late November low