Bitcoin Analysis 2026: Will it break the $90,000 barrier or face a correction?

Table of Contents

1. Bitcoin’s New Consolidation Range: 86K–90K
2. Ethereum & Solana: Testing Resistance Amid Bearish Patterns
3. XRP & Chainlink: Short-term Relief vs. Long-term Weakness
4. Trading Strategies: How to Profit in a Choppy Market
5. Frequently Asked Questions (FAQ)

Bitcoin Consolidation & The 90K Wall

Bitcoin’s New Consolidation Range: 86K–90K

As we close out 2025, Bitcoin (BTC) is officially confirming a new short-term consolidation range. Despite a massive bearish divergence on the weekly timeframe, a smaller bullish divergence on the 3-day chart is providing a "break" from the downward pressure. This sideways movement is highly correlated with the S&P 500, which is also consolidating after its latest pullback.

💡 Key Technical Levels: Bitcoin is currently trapped between support at $86,800 and resistance at $90,000. Liquidity heatmaps show significant clusters at $86.3K (downside) and $90.9K (upside).

Ethereum & Solana: Testing Resistance

Ethereum (ETH) is currently retesting a crucial resistance zone between $3,000 and $3,100. While a potential Head and Shoulders pattern is forming, it remains unconfirmed unless the price breaks below the $2,800 neckline.

The Market Correlation: Stocks vs. Crypto

Solana (SOL), on the other hand, is playing out its bullish divergence through choppy sideways action, finding support near $118–$120.

🔗 Also read: To understand institutional flows, check our analysis on BlackRock's 2026 ETF Roadmap.

XRP & Chainlink: Short-term Relief

Both XRP and Chainlink (LINK) are displaying a similar structure: significant long-term weakness due to weekly bearish divergences, but immediate short-term relief. XRP is holding support at $1.80, while LINK is forming a possible bearish setup if it fails to hold the $11.80 level. Analysts suggest this "neutral" price action will likely persist through New Year’s Day due to low holiday trading volume.

Trading Strategies: Profit in a Choppy Market

In a sideways market where neither bulls nor bears have control, a Grid Bot trading strategy is the most optimal approach.

Profiting in a Choppy Market (Grid Bot Strategy)

This allows for passive profits during "scandal candles" (quick pumps and dumps) without getting trapped in high-leverage long or short positions before a confirmed breakout.

Asset	Immediate Support	Key Resistance
Bitcoin (BTC)	$86,800	$90,000
Ethereum (ETH)	$2,800	$3,050
Solana (SOL)	$118	$130

Frequently Asked Questions (FAQ)

1. Is the Bitcoin bull run over?
Technically, the weekly chart shows a massive bearish divergence, indicating a lack of bullish momentum for months. However, short-term relief is expected through early January.

2. What is the best strategy for a sideways market?
As mentioned in the analysis, Grid Bot trading is ideal for capturing profits in a range-bound market (choppy price action).

3. What should I watch for in Ethereum?
The key is a daily candle close above $3,100 to invalidate the bearish Head and Shoulders pattern.

Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research before trading.