As we enter the first week of January 2026, Bitcoin is finding itself in a classic "tug-of-war" phase. After a volatile 2025 that saw a massive peak of $126,000 followed by a sharp correction, the market is currently consolidating.
Here is a breakdown of the current landscape and a professional trading setup to help you navigate the coming weeks.
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$BTC Market Sentiment: The "Great Reset"
Bitcoin has spent the last month slithering between $87,000 and $90,000. While it's down roughly 30% from its all-time high, many analysts see this as a healthy "purging" of speculative excess.
The Bull Case: Institutional accumulation remains steady. ETFs are still absorbing supply, and a "bullish divergence" against gold suggests BTC might be ready to play catch-up.
The Bear Case: Technical indicators like the SuperTrend have issued sell signals on higher timeframes. If the $85,000 support fails, we could see a deeper slide toward the $70,000 zone.
🛠 Trading Setup: BTC/USD
The chart is currently forming a Symmetrical Triangle, which usually precedes a massive breakout. Here is how to play both sides:
🟢 The "Buy" (Long) Scenario
* Entry: Wait for a daily candle close above $92,000 (breaking the upper resistance).
* Target 1: $102,000 (Psychological barrier)
* Target 2: $108,000 (200-day Moving Average)
* Stop Loss: Below $87,500
🔴 The "Sell" (Short) Scenario
* Entry: If Bitcoin breaks and holds below $85,800.
* Target 1: $80,000 (Major support)
* Target 2: $74,000 (Cycle structural support)
* Stop Loss: Above $90,500
💡 Pro Tip: Watch the January 15th deadline for "Strategy Inc." (formerly MicroStrategy). Their potential inclusion or exclusion from major equity indices could trigger the volatility needed to break this range.
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