Bitcoin remained close to the $92,000 mark on Tuesday as market experts and traders highlighted improving technical indicators and macroeconomic factors that suggest the cryptocurrency might have overcome its severe downturn experienced in the fourth quarter.
This price movement follows a period of high volatility during which bitcoin dropped nearly 35% from its October peak above $126,000. The decline was driven by forced liquidations and selling pressure from long-term investors. Although bitcoin ended December with losses for a third straight month—a rare occurrence historically—many analysts now believe conditions are ripe for a recovery.
“We are reasonably confident that Bitcoin and the broader digital asset markets have reached their bottom,” stated Gautam Chhugani, an analyst at Bernstein, along with his team in a report released Tuesday. They identified late-November lows near $80,000 as likely marking the cycle’s trough.
Bernstein dismissed worries that bitcoin has already peaked within its traditional four-year cycle, describing such concerns as “exaggerated” given that institutional involvement is increasingly shaping market dynamics rather than retail speculation.
“As we previously emphasized, apprehensions about the four-year cycle pattern do not hold in today’s context where institutional demand is fueling adoption,” they added.
Could Bitcoin Reach $200K by 2027?
The firm reaffirmed its optimistic long-term outlook by maintaining price targets of $150,000 for 2026 and $200,000 for 2027. Bernstein argues that an ongoing “digital assets revolution”—encompassing tokenization and regulated financial infrastructure—is extending this bull run beyond historical expectations.
Despite experiencing roughly a 6% drop in 2025, Chhugani noted that year was generally positive for crypto overall—especially benefiting crypto-related stocks and initial public offerings (IPOs).
Looking forward, Bernstein anticipates a tokenization “supercycle” spearheaded by companies like Robinhood, Coinbase, Figure Financial Services Inc., and Circle to continue attracting significant institutional investment into cryptocurrencies.
Other industry observers share this view of easing downward momentum. For instance, on Sunday 10X Research indicated technical signals point toward bitcoin entering an upward trend after weeks of sideways trading during the holiday season.
“There appears to be solid potential for a tactical rally,” commented Sean Farrell—the head of digital assets at Fundstrat—on Monday. He cited improving liquidity conditions such as Federal Reserve balance sheet expansion alongside reductions in U.S Treasury General Account balances as supportive elements boosting risk assets including bitcoin.
Fundstrat projects bitcoin could test levels between $105K-$106K if favorable circumstances persist; however Farrell cautioned his primary scenario still allows room for notable declines early next year before stronger gains materialize later in 2026.
A Technical Look at Bitcoin
From a chart analysis standpoint,b itcoin closed last week around $91,&500 — just above short-term resistance near approximately &91,&400. Experts suggest maintaining this level may pave way toward challenging &94,&000 —a ceiling holding since mid-November. A sustained breakout beyond here could shift focus towards &98,&000 followed by tougher resistance zones spanning roughly &$103,&$500 up through . On downside risks traders monitor support near about “&&&&',87,,0,,00”, followed further below by stronger ranges between $,84,,00&sndash;;72&sndash;;00 should selling pressures re-emerge. Market sentiment has shifted away from outright bearishness toward neutrality amid stabilizing prices.