Bitcoin price was stuck in a tight range on the final day of the year as demand from American investors thinned. The coin was trading at $88,585, inside a range it has been in the whole of December. It remains 30% below its highest point this year.
Bitcoin Demand Wanes as Long-Term Holders Stop Selling
The BTC price has remained in a consolidation stage in the past few weeks as ETF inflows waned. Data compiled by SoSoValue shows that these funds had over $1.1 billion in outflows this month, lower than the $3.48 billion they shed last month.
These outflows remained at an elevated level as investors sold and rotated to other assets like gold, silver, and the stock market. All these assets recently surged to their all-time highs, continuing a momentum that started in April.
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Bitcoin price also dropped as long-term holders started selling to book profits. We saw many historically dormant coins dump their coins during the year. On the positive side, there are signs that this selling is losing momentum, which is a sign of capitulation.
Meanwhile, Chinese Bitcoin miners dumped coins worth billions of dollars as some regional governments intensified their crackdown on the industry.
Looking ahead, the potential catalysts for Bitcoin in 2026 are Federal Reserve interest rate cuts, soaring global M2 money supply, increased tax refunds in the US, and a rotation from assets like silver and gold back to Bitcoin.
Bitcoin Price Technical Analysis
The daily timeframe chart shows that the BTC price has been in a tight range this month. All attempts to rebound faced substantial resistance at the $90,000 level.
A closer look shows that the coin has formed a bearish pennant pattern, a common continuation sign. Most notably, the two lines of the symmetrical triangle are about to converge as the new year starts.
Bitcoin price has remained below the 50-day Exponential Moving Average (EMA) and the Supertrend indicators. Therefore, the most likely BTC forecast is bearish, with the next key target being at $80,450, its lowest level on November 21. This target is about 10% below the current level.
The bearish outlook will become invalid if the coin moves above the 50-day EMA at $91,795.
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