Bitcoin shows early signs of bottoming out, likely to fluctuate around the $86,000 level in the short term

WhaleWatcher · 2026-01-19T09:11:48+00:00

On-chain analysts have pointed out that Bitcoin has recently shown bottoming characteristics, with the $86,000 to $92,000 range serving as a key support zone. It is expected to face tax-related selling pressure within the next two weeks, and the expiration of options in late December may trigger new market trends. Overall, oversold conditions are evident, and rebound opportunities are gradually accumulating.

WhaleWatcher

2026-01-19 09:11:48

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Key Points at a Glance

On-chain analysts have recently been discussing a common topic—the short-term bottom characteristics of Bitcoin. According to market observations, this correction has shown typical oversold signs. Although final confirmation still requires some time, the signals are becoming increasingly clear.

$86,000 is a Key Support Level

Currently, Bitcoin is oscillating within a wide range of $86,000 to $92,000. This range corresponds to recent important support and resistance levels. From a technical perspective, this range is not coincidental but stems from large-scale institutional portfolio adjustments at the end of the year. Many funds conduct year-end liquidation in December, leading to cyclical profit-taking pressure in the market.

A New Round of Adjustment May Occur Within Two Weeks

Market participants expect that in the next two weeks, investors will continue to face selling pressure driven by tax considerations. This pressure is especially prominent at year-end because investors in the US and other regions need to complete tax planning before the end of the year. Against this backdrop, the reference value of technical indicators is limited, and the market is more dominated by macro factors.

Options Expiration May Signal a Turning Point

In late December, a large number of options contracts will expire, which could serve as a new catalyst for the market. Usually, during options expiration, liquidity can change rapidly, forming new price trends. Analysts believe that only after such events occur can we determine whether Bitcoin is truly breaking out of its consolidation range.

Bottom Confirmation Still Needs Observation

The most convincing current evidence is that the market has already shown typical bottom characteristics—extreme oversold conditions. Although bulls cannot confirm 100% that the lowest point has appeared, in the short term, the downward space is already quite limited. This indicates that opportunities for a rebound are accumulating.

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