Join our Telegram channel to stay up to date with the latest news
Bitcoin’s price plunged 3% over the past 24 hours to trade at $86,331 as of 3:45 a.m. EST, a 19% increase in daily trading volume to $46.4 billion.
The BTC price drop comes as asset manager Grayscale says Bitcoin remains in a bull market and could reach a new all-time high (ATH) in the next six months.
JUSTIN: Grayscale says Bitcoin could reach new all-time highs in 2026 as 4-year cycle pattern breaks
Send it 🚀 pic.twitter.com/IwCX1njk6V
– Bitcoin Archive (@BitcoinArchive) December 2, 2025
Grayscale says the current correction, which has seen Bitcoin fall more than 30% from its peak, is part of normal bull market pullbacks and does not signal an end to the uptrend.
The company expects demand for “alternative value stores” to increase as governments grapple with high debt and long-term inflation risks. A context that favors Bitcoin over fiat currencies.
The asset manager also believes the classic four-year halving cycle is fading, with institutional flows and exchange-traded products now playing a larger role in driving prices higher.
Grayscale also highlighted a clear change in the US regulatory climate over the past two years, including the launch of spot Bitcoin ETFs and the passage of the stablecoin GENIUS Act.
The company expects Congress to go further in 2026 with bipartisan legislation on crypto market structure. This could “cement blockchain-based finance” in US capital markets and attract more professional investors.
Bitcoin price slips below moving averages
On the daily chart, Bitcoin is trading below the 50-day and 200-day simple moving averages, clustered around $95,000 and $108,000.
This pattern shows that bears are still in control of the short-term trend. The 50-day SMA now also acts as nearby resistance, and the 200-day SMA caps any stronger rebound.
The Fibonacci retracement taken from the October high near $126,270 to the March low shows that price hovering just above the 0.618 retracement zone around $94,000 has now broken lower, pushing BTC towards a wide band of support between around $74,500 and $86,000.
Recent candles show repeated rejections near $95,000 and lower highs since November, confirming a medium-term downtrend. They also show that the selling momentum slows as the price moves deeper into support.
BTCUSD analysis source: Tradingview
Bitcoin technicals are neutral to bearish but are no longer extreme. The daily Relative Strength Index is hovering around 36, just above oversold territory. This suggests limited room for an aggressive decline before dip buyers return.
Meanwhile, the MACD line is below the signal line and in negative territory. However, the histogram bars are flattening, a sign that the bearish momentum may be losing strength.
If Bitcoin holds above the lower support zone near $74,500 and the RSI begins to rise, a rebound towards the 50-day SMA around $95,000 seems possible over the next few weeks.
A clean breakout and daily close above this level would open the door for a move toward $106,000 and then back to the previous high near $126,000, consistent with Grayscale’s view that a new all-time high is possible in about six months.
However, if the bears push BTC decisively below $74,500, the market could see a deeper correction, shaking off the last bulls before a longer-term recovery.
Related articles:
Best Wallet – Diversify your crypto portfolio
- Easy-to-use, feature-driven crypto wallet
- Get Early Access to Upcoming Token ICOs
- Multi-chain, multi-wallet, non-custodial
- Now on App Store, Google Play
- Stake to win a $BEST native token
- More than 250,000 active users per month
Join our Telegram channel to stay up to date with the latest news
