Bitcoin hovered around $92,000 on Tuesday, with analysts and traders pointing to improving technical and macro signals that suggest the cryptocurrency may have avoided the brutal sell-off of the fourth quarter.
The price move comes after months of volatility, with Bitcoin falling 35% from its October peak of more than $126,000 amid forced liquidations and selling pressure from long-term holders. Assets ended December with a third consecutive month of declines, a historically rare pattern, but several analysts argue that conditions are now favorable for a recovery.
“We believe with reasonable confidence that Bitcoin and the broader digital asset market have bottomed out,” Bernstein analyst Gautam Chughani and his team said in a note on Tuesday, noting that the late November low of around $80,000 is likely the bottom of the cycle.
Bernstein countered concerns that Bitcoin has already peaked within its traditional four-year cycle, saying such concerns are “overblown” in a market increasingly dominated by institutional participation rather than individual speculation.
“As we have previously emphasized, we believe market concerns about a four-year cycle pattern are unwarranted in current market conditions, where institutional demand is driving adoption,” the analysts wrote.
Will Bitcoin reach $200,000 by 2027?
Bernstein reiterated his long-term bullish outlook for Bitcoin, keeping the price target at $150,000 in 2026 and $200,000 in 2027. The company claims that a broader “digital asset revolution” including tokenization and regulated financial infrastructure is extending the current bull market beyond historical norms.
Despite Bitcoin falling by around 6% in 2025, Chugani noted that this year has been largely constructive for the crypto sector, especially for crypto stocks and initial public offerings.
Looking ahead, Bernstein expects the tokenization “supercycle” led by companies like Robinhood, Coinbase, Figure, and Circle to continue drawing institutional investors into the space.
Other market participants also agreed with the view that the downward momentum has weakened. On Sunday, 10X Research said technical indicators suggest Bitcoin has entered a bullish trend after weeks of trading in a range throughout the holiday period.
“There is a good opportunity for a tactical rally,” Sean Farrell, head of digital assets at Fundstrat, said in comments on Monday. Mr. Farrell cited improved liquidity conditions, such as the expansion of the Federal Reserve's balance sheet and the withdrawal of funds from the U.S. Treasury's general account, as factors supporting risk assets such as Bitcoin.
Fundstrat believes Bitcoin could test the $105,000 to $106,000 range under favorable conditions, but Farrell cautioned that his base case still includes the risk of a significant decline in the first half of this year ahead of a stronger rally in the second half of 2026.
Bitcoin technical analysis
From a technical perspective, Bitcoin ended last week near $91,500, just above short-term resistance near $91,400. Analysts say holding this level could open the door for a new challenge to $94,000, which has been the price ceiling since mid-November. A sustained breakout could focus on $98,000, with stronger resistance extending towards the $103,500 to $109,000 zone.
On the downside, traders see support around $87,000, followed by a stronger band between $84,000 and $72,000 if selling pressure picks up again. As prices stabilized, market sentiment moved from outright bearish to more neutral.
Bernstein also highlighted the potential ramifications for Bitcoin proxy stocks, particularly Strategy. Analysts said a recovery in bitcoin prices should help restore Strategy's premium to net asset value, which has been compressed significantly over the past year.
“As concerns about an MSTR liquidation event subside, we expect MSTR's premium to NAV to recover significantly toward its historical average,” the analysts wrote. The strategy has historically traded at an average multiple to book value of 1.57, but this week it was around 1.02.
Strategy continues to finance its Bitcoin purchases through a combination of equity and preferred stock issuances, and recently built a $2.25 billion “US dollar reserve” to prepay dividend obligations.
Still, the company faces risks, including the possibility of being removed from the MSCI index, which could trigger index-related outflows.
The post Bitcoin Holds $92,000 as Wall Street Analysts Suggest Market Bottom appeared first on Bitcoin Magazine and was written by Mika Zimmerman.
