Bitcoin (BTC) is nearing a pivotal moment as the year draws to a close. While the annual candle currently sits slightly below the yearly open of around $93,374, a 6.24% move higher would be enough to flip the year green. Importantly, this comes after Bitcoin set a new all-time high above $125,000 in October, reinforcing the strength of the broader bull cycle despite the subsequent market-wide correction. On the macro front, easing financial conditions remain a strong tailwind. The U.S. Federal Reserve implemented three 25-basis-point rate cuts in 2025, injecting liquidity and improving conditions for risk assets. While Fed Chair Jerome Powell struck a cautious tone at the December FOMC meeting, lower rates continue to support capital rotation into assets like Bitcoin, which has historically benefited from periods of monetary easing. With liquidity improving and Bitcoin holding well above previous cycle highs, the setup remains constructive as the market looks ahead to the next leg of the bull run.
At the time of writing, BTC was trading at $89,869.
Also Read: What Is Bitcoin? Bitcoin White Paper, Mining, and Use Cases
BTC witnessed a sharp fall after making the all-time high of $126,199. The price plunged by almost 36% and formed a recent low of $80,600. The asset took support around $80,000, and the longer lower shadow near this level indicated buying interest. Following that, BTC saw a relief rally and surged by almost 17%. The asset is currently consolidating and trading sideways in a range between $84,000 and $94,000 with declining volumes. A breakout on either side of this range, accompanied by strong volumes, will likely determine the next trend direction.
Key Levels:
| Support 2 | Support 1 | Asset | Resistance 1 | Resistance 2 |
| $80,000 | $85,500 | BTC | $95,000 | $100,000 |
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