Bitcoin Faces Crucial Levels as 2025 Closes: Market Analysts Weigh In
Bitcoin's Steep Decline in 2025: Analysts' Insights
Bitcoin has experienced a 22.54% drop this quarter, marking its most significant decline since 2018. With the year drawing to a close, the cryptocurrency is unlikely to meet the optimistic targets previously anticipated by analysts.
Market analysts are reevaluating short-term forecasts, discussing potential year-end scenarios for Bitcoin and offering perspectives for 2026.
Key Price Levels and Market Dynamics
After hitting a peak in October, Bitcoin has encountered substantial market challenges. According to Coinglass data, the asset has recorded consecutive monthly losses, with a 3.69% drop in October and a sharper 17.67% decline in November. So far this month, Bitcoin is down 2.31%.
The cryptocurrency is struggling to maintain a position above $90,000, trading below the levels observed at the beginning of the year. Factors such as decreased demand growth, slowed spot ETF inflows, and strategic selling by smart-money investors are increasing the downside risks for Bitcoin.
Currently trading at $87,183, Bitcoin has seen continued selling pressure. Ray Youssef, CEO of NoOnes, commented that Bitcoin is "stuck in a compressing, range-bound action," hindered by tightening liquidity and waning risk appetite.
Youssef noted that bulls have protected the $85,000 support level but have yet to overcome resistance around $93,000. Options market data reflects this struggle, with put options concentrated around $85,000 and call options between $100,000 and $120,000.
Youssef predicts that upcoming options expirations, along with US government fiscal data and the Federal Reserve's liquidity measures, could introduce short-term volatility, though the market's directional bias remains unclear.
"Until Bitcoin decisively breaks above the $93,000 resistance or falls below the $85,000 support, it is likely to remain volatile and range-bound," he stated.
2026 Bitcoin Outlook
Farzam Ehsani, CEO of VALR, described the current period as one of the most challenging for cryptocurrencies in recent years. He cited factors like seasonal weakness and a shift towards conservative investments, such as US government bonds, as contributing to the current market conditions.
Ehsani highlighted constrained market liquidity and a cautious stance from institutional players, focusing on capital preservation. He mentioned that the ongoing correction underscores the market's fragility and susceptibility to panic-driven selling.
"The decline could be temporary if major players are positioning for substantial purchases," he suggested. "Alternatively, the market could remain oversaturated due to a weakening dollar and Federal Reserve policies."
Ehsani forecasts a potential new historical high for Bitcoin in 2026, with prices possibly returning to the $100,000-$120,000 range by the second quarter. He emphasized that institutional adoption, regulatory developments, and macroeconomic conditions will be crucial factors influencing Bitcoin's trajectory next year.