Bitcoin’s price action is currently undergoing significant compression, with multiple technical indicators hinting at a potential breakout. Despite the persistent downtrends observed in recent months, weakening sell volume and robust demand zones might suggest the cryptocurrency is gearing up for a directional move. Many analysts concur that should Bitcoin break out decisively, it could open the floodgates toward the much-coveted $95,000–$100,000 range.
Looking at the technical charts, analyst Gordon has noted a clear downtrend from October to December 2025 in the 4-hour Bitcoin USD chart on Binance. Bitcoin’s price has seen a decline from a near $110,000 high to approximately $87,000, establishing lower highs under a descending trendline that currently serves as dynamic resistance, hindering any upside momentum.
However, recent price candles portraying longer wicks alongside diminished sell volume suggest that sellers may be losing their grip on the market. Bitcoin’s price appears to be in a holding pattern, possibly anticipating a major influx of investment.
Furthermore, analyst Gordon has pointed out the relatively low ETF outflows combined with signals of steady accumulation, underscoring the notion that downside risks may be capped near current levels. A confirmed breach above the established trendline could propel Bitcoin towards the $95,000 milestone, with the psychological barrier of $100,000 shortly in sight.
In another analysis, Don has highlighted a descending wedge pattern evident on the 12-hour BTC chart. This structure consists of converging trendlines, with resistance maintaining a downward slope while support remains firmly around the $85,000 mark. As Bitcoin trades in this range, it reflects a pervasive market indecision.
Historically, descending wedges tend to favor bullish resolutions, although confirmation of this pattern remains elusive. Price movements continue to respond to both the upper and lower boundaries of this wedge, indicating ongoing compression rather than any definitive trend continuation. Don summarizes the situation as one where Bitcoin is still within this range, with neither bulls nor bears having made a clear assertion.
Additionally, signs of accumulation during these consolidation phases have emerged, reminiscent of prior cycles that led to upward movements following volume expansions. A breakout beyond the wedge’s resistance could trigger a rally towards the $95,000 mark, while a failure to do so could see Bitcoin testing liquidity levels around $82,000.
Meanwhile, analyst CyrilXBT has been focusing on the daily Bitcoin chart, particularly after the substantial drop below $100,000 in November. The price plunged to the $85,000 demand zone before finding stability and staging a modest rebound. This area has now become a solid base for buyers.
Despite this bounce-back, the price has consistently formed lower highs and is currently constrained by a downtrend line. The waning volume during the recent pullback indicates a decrease in bearish severity rather than outright panic selling. This situation is characterized as compression rather than a sign of weakness.
Moreover, on-chain data revealing exchange outflows reinforces the narrative of continued accumulation among investors. Analyst CyrilXBT emphasizes that reclaiming the $95,000–$100,000 range is essential for confirming a bullish shift in market sentiment. Until such a breakout occurs, Bitcoin appears to remain in a holding pattern, highly sensitive to confirmation signals.
As it stands, Bitcoin is navigating through various tightening technical structures across different timeframes. Analysts largely agree that this compression is indicative of a forthcoming decisive move. The key takeaway is that directional confirmation will act as a pivotal trigger for the next significant phase in Bitcoin’s price action.
