- Bitcoin price rose above $90,200 on Monday.
- Bulls failed to hold gains and the price retreated to $86,717.
- Bulls appear to be regrouping, as analysts point to sustained support and potential upside.
Cryptocurrency markets have endured a challenging end to 2025, and Bitcoin (BTC) showed that this volatility likely carried into early 2026 as buyers struggled on Monday.
At the same time, the price action suggests the digital asset may be entering a period of relative consolidation rather than runaway moves.
On December 29, BTC traded around $87,000, remaining below $90,000 amid thin holiday liquidity and cautious investor sentiment.
Bitcoin briefly touches $90,000 before pulling back
Bitcoin briefly pierced the psychologically important $90,000 level on December 29, reaching an intraday high near $90,299 during early Asian trading hours.
The spike reflected short-lived optimism driven by spot purchases and limited short-covering in a thin market.
That advance proved fleeting, however, as selling pressure reemerged when the price approached higher levels, pushing BTC back toward $86,717.
At the time of writing, BTC had recovered some ground and reclaimed territory above $87,700. With market weakness still evident, the cryptocurrency has largely traded in a constrained range.
Bears currently hold a slight edge, with losses of roughly 2% over the past week and about 3% for the month.
This pattern paints a picture of consolidation, where short-lived peaks fail to stick due to profit taking and reduced trading volumes typical of the holiday period.
Analysts weigh in on Bitcoin’s outlook
Bitcoin remains below the $90,000 threshold in part because selling pressure has repeatedly checked upside attempts.
This dynamic was underlined by significant outflows from digital asset investment products last week.
CoinShares data showed about $446 million exited crypto funds.
Bitcoin accounted for the bulk of outflows, with net redemptions of $443 million, while Ethereum saw outflows of $59.5 million.
Institutional BTC selling has been highlighted by some market observers as a contributing factor.
By contrast, certain altcoins attracted capital: XRP posted the largest inflows of roughly $70.2 million, while Solana drew about $7.5 million.
Given these flows, market watchers remain guarded in their expectations.
Analysts at QCP Capital noted in a recent briefing that Bitcoin’s modest advance occurred against a backdrop of light holiday trading.
Price support stemmed primarily from spot and perpetual market buying rather than widespread forced liquidations of short positions.
Post-options expiry positioning shows persistently elevated funding rates, which leaves room for upward gamma exposure if BTC can hold above roughly $94,000.
At the same time, downside protective hedging has eased, though sharply reduced open interest has limited conviction among traders.
Analysts suggest the next directional move could depend on a return of market liquidity once regular trading resumes in the new year.
Overall, the current environment points to a crypto market taking a breather after a turbulent 2025.
Structural advances in adoption and regulation have strengthened the long-term outlook, but near-term price action reflects broader risk aversion and seasonal factors.
Investors are likely to await clearer catalysts, which could include macroeconomic shifts or renewed institutional inflows.
A sustained break above $94,000 may be the key trigger that returns the initiative to the bulls.