Bitcoin (BTC) is currently facing a divided opinion in the market. Some traders are convinced that the cryptocurrency is experiencing a bearish trend, while others argue that its price does not accurately represent its intrinsic value.
Among those who believe Bitcoin is undervalued is crypto analyst Sykodelic. They assert that the recent downturn in the market isn’t due to fundamental issues but rather a temporary adjustment, with the overall upward trend remaining intact.
Market Dynamics and Structural Analysis
Sykodelic contends that Bitcoin’s decline over the past couple of months should not be interpreted as a significant breakdown.
“The events of the last 6–8 weeks do not signify a fundamental shift in the market as many presume… It has merely been a structural reset.”
This market observer maintains that despite Bitcoin lagging behind other recovering assets, its long-term structure remains robust. They connect Bitcoin’s valuation to trends observed in gold and global liquidity levels. Their analysis suggests that Bitcoin’s current price could be nearly 90% lower than what it should be based on these macroeconomic indicators, projecting an optimistic short-term target of $153,000.
Bitcoin is significantly undervalued regardless of how you analyze it.
The developments over these past weeks have not indicated any fundamental change…
It’s simply been a structural reset while maintaining an overall high-time-frame perspective.
Currently, Bitcoin appears to be trailing behind…
— Sykodelic 🔪 (@Sykodelic_) December 21, 2025
Sykodelic’s forecasts extend beyond immediate expectations; they believe it’s common for Bitcoin to exceed its fair value estimates and could potentially reach $200,000 within months. In response to critics questioning this projection:
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“A price exceeding $200k for Bitcoin isn’t just some fanciful prediction; it’s grounded in reality.”
The current trading price of Bitcoin hovers around $89,000 with daily trading volumes reaching approximately $28 billion. Over the last day alone, it has seen an increase exceeding 1%, although there has been slight depreciation over recent days. After reclaiming levels above $88,000 during the weekend period briefly touched $90,000 before retracting slightly again.
Bigger Market Landscape
As reported by CryptoPotato, Bitwise CIO Matt Hougan expresses optimism about improvements expected by 2026 within this sector. He argues against relying on traditional four-year cycles for predicting BTC performance due to evolving long-term dynamics which might foster stronger consistency moving forward; he anticipates new all-time highs within next year’s timeframe.
Daan Crypto Trades describes upcoming conditions for BTC as “a very tumultuous year,” highlighting substantial inflows into cryptocurrencies alongside accumulation from treasury entities juxtaposed against selling activities from long-standing holders during this time frame. He believes Q1 of 2026 will reveal whether historical four-year cycles remain applicable or need reevaluation altogether.
Pursuing current trends shows BTC testing resistance around $90K range where analyst Ali Martinez indicates if successful breakout occurs above this threshold then prices may surge towards ranges between $91K-$93K level whereas failure could revert values back down towards approximately$84K level instead .
Martinez further shared insights drawn from previous cycle patterns indicating typical bear markets tend follow trajectory resembling top-to-bottom corrections lasting roughly364 days . Should such pattern persist potential bottoms might emerge around October ,2026 with historical averages suggesting bottom near$37 ,500 mark .
Additionally ,another crucial threshold at$46 ,457 was identified where longer term investors generally begin accumulating positions according CVDD model metrics .