However, it did not take long for the price of BTC to rebound.
While Bitcoin has recovered, the 4-hour chart indicates that it is still consolidating within a symmetrical triangle. That pattern signals indecision.
It also suggests that the next breakout could be sharp once the range is broken. For now, BTC continues to face resistance near $92,004.
At the same time, it is sitting on fragile support around $90,093. If bulls fail to defend that level, Bitcoin’s price could slip lower and retest $87,450 as the next downside target.
Furthermore, the Moving Average Convergence Divergence (MACD) has formed a bearish divergence. If this trend persists, an extended BTC rally may become challenging.
Meanwhile, the Awesome Oscillator (AO) reading remains negative, but the indicator has flashed a green histogram bar.
Due to this mixed signal, Bitcoin’s price may continue to consolidate between the $87,000 and $92,000 range.
Analysts Divided
However, some analysts believe the recent rebound could do more than relieve selling pressure. They argue it may help Bitcoin establish a more substantial base and form a new support zone.
One analyst sharing that view is the pseudonymous trader Rekt Capital.
He suggests the recovery could mark a key step in resetting the structure, especially if BTC holds above recent levels and turns prior resistance into support.
“Bitcoin has rejected from the Range High resistance at $93500 which is also confluent with the multi-week Downtrend (black) Bitcoin is now attempting to retest the $90500 level which is the Mid-Range (dashed black) of its current Range This Mid-Range acted as resistance from late November 2025 to late December 2025 and now has a chance to flip into new support this January 2026,” The analyst noted.
For Michaël van de Poppe, Bitcoin’s current consolidation above the 21-day Moving Average (MA) indicates that it remains undervalued.
“Ultimately, BTC is severely undervalued at this point, and I think it’s just a matter of time until it picks up strong momentum,” van de Poppe posted.
BTC Losing Liquidity to Rocks and Stocks
Meanwhile, CryptoQuant CEO Ki Young Ju struck a more cautious tone. He said Bitcoin’s price may not break out anytime soon.
Instead, Ju expects BTC to trade sideways for the next few months.
He argued that liquidity has shifted away from crypto and into traditional markets, particularly stocks and precious metals such as gold and silver.
As a result, Bitcoin could struggle to attract the sustained inflows needed for a clean breakout.
“Money just rotated to stocks and shiny rocks. I don’t think we’ll see a -50%+ crash from ATH like past bear markets. Just boring sideways for the next few months,” Ju added.
BTC Price Analysis: Consolidation
Looking at the technical picture again, the daily chart shows BTC has been stuck in a broad consolidation range since November, trading between $85,592 and $93,681.
Because price keeps bouncing inside that band, Bitcoin still lacks a clear directional bias.
Momentum also looks soft. BTC is now close to slipping below the 20 EMA (blue) after already falling under the 50 EMA (yellow).
When price loses both short-term and mid-term EMAs, it signals weakening trend strength.
As a result, Bitcoin’s price is more likely to fluctuate sideways than break out.
This setup supports Ki Young Ju’s view. It does not look like a breakout structure yet.
Instead, the rebound could be a dead cat bounce, with BTC staying range-bound until fresh liquidity returns.
In that case, Bitcoin could push toward $102,796. However, if bears take control and BTC loses the lower end of the range, downside risk increases. That breakdown could drag the price toward $80,633.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
