Bitcoin's Struggle and Crypto's Potential Catch-Up in 2026

By: Eva Baxter

Bitcoin continues to face challenges as it remains below the $90,000 mark. This situation highlights a crypto market that is currently lacking bullish momentum following an extended phase of consolidation. Despite several attempts to climb higher, Bitcoin has struggled to maintain any significant upward trend, causing growing concerns among analysts that a bearish market might persist into 2026. As traders await a clearer indication of market direction, caution remains the prevailing sentiment, with investor risk appetites diminished.

On the other hand, not all market watchers are convinced that the crypto golden era is over. Some investors are optimistic, seeing the current moment as a transitional phase rather than a complete reversal of trends. On-chain analyst Axel Adler provides a compelling perspective through the 'Supply in Profit' metric, suggesting a forthcoming bullish phase if Bitcoin can maintain its current price levels. He observes a sharp fall in the metric from an October high above 19 million BTC to about 13.5 million BTC, indicative of potential for a price rebound later in 2026.

Presently, Bitcoin’s price zigzag below the $90,000 threshold signifies its structural vulnerability. After a significant breakdown from the $100,000-$105,000 range, the cryptocurrency turned prior support into resistance, marking a substantial shift in market control and initiating a deeper retracement phase. The price appears compressed below key moving averages, typical of bearish trends, which suggests any upward movement will likely face supply pressure. Despite decreased selling pressure, the absence of strong bullish volumes leaves buyers hesitant.

In contrast, the year has seen gold prices appreciate by 9% and the S&P 500 index by 1%, while Bitcoin's price contracted by 20%, underscoring a challenging environment for cryptocurrencies. However, analysts like those from market intelligence firm Santiment foresee the potential for crypto to recover some lost ground in 2026, suggesting a 'catch-up' rally may be possible. This outlook presumes a stabilization in Bitcoin’s market dynamics and a potential resurgence in demand. If Bitcoin succeeds in reclaiming key resistance levels around the $90,000 mark, the sentiment could shift more favorably towards a bullish rally.