- Bitcoin price rose above $90,200 on Monday
- Bulls failed to hold gains, and the price pulled back to $86,717
- Bullish traders are looking for renewed strength as analysts point to ongoing resilience
The final weeks of 2025 proved challenging for the crypto market, and Bitcoin (BTC) showed signs that this weakness could carry into early 2026 after bulls struggled on Monday.
Despite the pullback, the price action also suggests the flagship digital asset has entered a period of relative consolidation.
On December 29, BTC traded around $87,000, remaining below $90,000 amid thin holiday liquidity and cautious investor sentiment.
Bitcoin touched $90,000 before retreating
Bitcoin briefly cleared the psychologically significant $90,000 level on December 29, reaching an intraday high near $90,299 during early Asian trading.
The uptick reflected a short-lived optimism, driven by spot buying and limited short-covering in some markets.
That rally proved fleeting, however, as selling emerged near higher levels and pushed the price down to $86,717.
At the time of writing, BTC had recovered slightly, reclaiming territory above $87,700. Overall market weakness has left the cryptocurrency largely trading within a defined range.
Bears retained the edge, with the market down roughly 2% over the past week and about 3% for the month.
Those results are consistent with a consolidating market where brief spikes are undone by profit-taking and lighter holiday volumes.
Analysts weigh in on Bitcoin’s price outlook
Bitcoin remains capped below the $90,000 resistance as bearish conviction among sellers keeps upside progress contained.
This dynamic was underscored by significant outflows from digital asset investment products last week.
Data from CoinShares showed approximately $446 million left the crypto market.
Bitcoin bore the brunt of those moves, suffering net redemptions of $443 million, while Ethereum saw outflows of $59.5 million.
Institutional selling of BTC has been highlighted as a key factor by some observers.
By contrast, some altcoins attracted inflows: XRP recorded the strongest inflows at $70.2 million, and Solana drew $7.5 million.
Given these flows, market watchers remain cautious in their near-term outlooks.
Analysts at QCP Capital recently noted that Bitcoin’s modest upside occurred against the backdrop of thin holiday trading.
They suggested that the recent support came largely from spot and perpetual market buying rather than widespread forced short-covering.
Post-options expiry metrics showed persistently elevated perpetual funding rates, indicating a potential gamma exposure buildup if BTC can sustain levels above roughly $94,000.
Meanwhile, downside hedging activity has eased, although rapidly declining open interest signals limited trader conviction.
QCP and other analysts say the next directional move could depend on a recovery in market liquidity as normal trading resumes in the new year.
Overall, the current environment suggests the crypto market is catching its breath after a turbulent 2025.
Structural advances in adoption and regulatory clarity support longer-term prospects, but short-term price action is reflecting broad risk aversion and seasonal factors.
Investors are likely to wait for clearer catalysts — such as macroeconomic shifts or renewed institutional inflows — before committing to a decisive view.
A sustained break above $94,000 could be a pivotal development for the bulls.