Bitcoin's growing roadblock: The trendline from $126,000 limits gains
TL;DR
Bitcoin's recovery attempts are being capped by a descending trendline from its October record high above $126,000. A breakout above this resistance is needed to shift from bearish to bullish momentum, with immediate focus on support zones near $84,000.
Key Takeaways
- •Bitcoin's gains are limited by a descending trendline from the $126,000 record high, creating resistance near $90,000.
- •Failure to break above this trendline signals continued bearish pressure, with support levels at $84,000–$84,500 and $80,000.
- •A breakout above the trendline could accelerate gains toward $100,000, confirming a bullish trend change.
- •The broader crypto market in 2025 saw structural progress but stagnant token performance, with only 15% of new tokens trading above initial valuations.
What to know:
- BTC's recovery attempts on Monday ran into a price ceiling identified by a trendline from record highs.
- A potential breakout would confirm a bearish-to-bullish trend change.
- BTC's recovery attempts on Monday ran into a price ceiling identified by a trendline from record highs.
- A potential breakout would confirm a bearish-to-bullish trend change.
This is a technical analysis post by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
Bitcoin's BTC$87,639.60 late-year attempt to regain poise ran into a price ceiling Monday, forcing prices back below $88,000.
That ceiling is defined by a descending trendline drawn from October’s record high above $126,000, connecting the peaks of subsequent shallow recoveries—most notably the $116,400 high.
This trendline swatted back attempts to establish a foothold above $90,000 on Monday, reinforcing the "staircase-down" pattern that has plagued the largest cryptocurrency throughout the fourth quarter. By failing to clear this hurdle, BTC has printed another "lower high," signaling a resurgence of sellers near the resistance line and stalling the momentum needed to challenge the six-figure mark.
Consequently, the immediate outlook remains bearish as long as prices hold below the trendline. The latest rejection shifts focus toward the $84,000–$84,500 support zone, followed by the November low near $80,000.
To revive the bullish outlook, BTC must overcome the trendline resistance. Such a breakout, especially against the backdrop of a sliding dollar index, could accelerate gains toward the $100,000 mark.
2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns.
This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026.
- Bitcoin was lower by a bit more than 1% to just below $88,000 on Tuesday.
- Crypto-related stocks were suffering far larger declines.
- Analysts suggest tax-loss harvesting and low liquidity are contributing to the action in crypto markets as the year ends.
- Some analysts remain cautiously optimistic about a potential rally, though significant recovery is not expected until liquidity returns in January.
Disclosure & Polices: CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of Bullish (NYSE:BLSH), an institutionally focused global digital asset platform that provides market infrastructure and information services. Bullish owns and invests in digital asset businesses and digital assets and CoinDesk employees, including journalists, may receive Bullish equity-based compensation.