Bitcoin Struggles Near Resistance as Bearish Signals Persist
Bitcoin remained steady on Christmas, reflecting a cautious sentiment and a decline in institutional participation. Market analysts foresee challenges on the horizon. Prominent crypto analyst has indicated that the asset might reach its lowest point around September-October 2026. In a recent tweet, he detailed that he has transferred all remaining USDT back into the banking system and presently holds no liquid crypto assets, attributing this decision to the ongoing bear market. Doctor Profit stated that the prevailing market conditions do not justify remaining liquid in crypto, and he anticipates that the bear phase will persist for an extended duration.
He revealed his most significant positions, which include a BTC short taken from the $115,000-$125,000 range and a medium-sized BTC holding acquired at approximately 85,000. He plans to capitalize on a possible short-term surge to $107,000 before the subsequent decline expected in February-March. At present, Bitcoin is valued at $89,259, reflecting a 2% increase over the past day. The asset experienced a brief surge, yet it remains trapped beneath significant resistance thresholds. Reports shows that $100,000 stands as a significant short-term resistance level for BTC, primarily attributed to the concentration of cost bases among recent whale investors and Binance users.
New whales, having held Bitcoin for under 155 days, show an average cost basis of approximately $100,500. This establishes a pivotal break-even zone where profit-taking or new accumulation may dictate the short-term price trajectory. Conversely, Binance spot users maintain an average of approximately $56,000, which establishes a notable support level during a potential prolonged bear phase. Long-term whales holding assets for over 155 days have an average cost basis of approximately $40,000. This indicates that they are still in a highly profitable position, likely playing a role in the recent profit-taking trends observed in the market.
In line with the prevailing bearish sentiment, analyst recently pointed out Bitcoin’s movements in relation to the 50-week simple moving average. He noted that historically, when this level has been breached, it has often resulted in an average drop of around 54%. When applied to current prices, such a move could indicate a potential decline toward $40,000. The analyst refrained from suggesting an immediate selloff; however, they cautioned that not reclaiming this level could leave the crypto asset vulnerable to prolonged downside pressure.
