Bitcoin consolidates as downside risks persist
|Bitcoin has made only three wave rallies from the November lows, which is one of the most important indications that more weakness may still lie ahead. Due to the holidays, it is not surprising that price is currently trapped in a range, and based on the latest price action this could be forming a triangle in wave four. This is still a continuation pattern, but it may need another subwaves D and E before we can expect the next push lower, possibly in January. In that case, price could drop back toward the 80k area, or even lower, within an impulsive wave A that is clearly visible on the daily chart. The invalidation level is around 99k, and as long as the current wave structure trades below that level, traders should remain cautious and prepared for another leg down in the near future.
Big picture
Bitcoin may have completed a higher degree wave (V) of III within an ending diagonal / wedge pattern. Even cyclically, it found the top in October 2025, so be aware of a bear market now and higher degree wave IV correction.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.