Bitcoin is entering a Christmas window as short liquidations strengthen the buy side and sentiment remains not overheated, CryptoQuant's Axel said on Dec. 22. Derivatives show futures driven by short covering, adding buy-side pressure and a "bullish neutrality" setup.

On-chain analyst Murphy said Bitcoin’s cost distribution has shifted sharply since the October 11 sell-off, which he views as the start of the current downturn. BlockBeats data shows 2.536 million BTC now concentrated between $80,000 and $90,000—up 1.874 million BTC since October 11—with additional buildup in the $90,000–$110,000 range. Murphy noted the market is nearing a balanced structure, with 6.168 million BTC in unrealized losses versus 7.462 million in unrealized gains, attributing recent selling to long-term profit-taking driven by cycle dynamics, macro uncertainty, and concerns such as quantum risk.

Bitcoin’s on-chain capital inflows have weakened, with its realized price stalling over the past month after roughly 2.5 years of steady growth, according to CryptoQuant. On December 22, founder Ki Young Ju said market sentiment may take several months to recover, as reported by BlockBeats. The flat realized price signals a pause in new capital entering the Bitcoin market and a shift away from sustained accumulation.

On December 22, Bitcoin is actively testing a crucial mid-term resistance level at $89,000. Should a decisive breakout occur, analyst @alicharts, in a post cited by BlockBeats, indicates potential upside targets ranging from $91,000 to $93,500. Conversely, a failure to breach this resistance could lead to a retest of the $84,600 support level.

In a December 22 interview, Michael Saylor said Bitcoin could reach $1 million if MicroStrategy acquires 5% of total BTC supply, and as high as $10 million with a 7% share, according to BlockBeats. The comments underscore Saylor’s long-term accumulation strategy and followed his December 21 Bitcoin Tracker post, widely seen as a signal of MicroStrategy’s continued commitment to expanding its Bitcoin holdings.

Bitcoin climbed back above $89,000 on Dec. 22, trading at $89,008 with a 24-hour gain of 0.8%, HTX market data show. The move marks a recovery above the key $89,000 level.

MicroStrategy holds 671,268 BTC valued at approximately $50.3 billion, representing about 3.2% of Bitcoin’s total supply, according to BeInCrypto. The company has accumulated Bitcoin as its primary treasury reserve asset since 2020, with its holdings periodically updated to reflect market purchases.

Alex Thorn, head of research at Galaxy Digital, said Bitcoin could reach $250,000 by end-2027, according to BlockBeats. In a December 21 analysis, Thorn noted options markets show similar odds for BTC hitting $70,000 or $130,000 by mid-2026, and $50,000 or $250,000 by end-2026, underscoring near-term uncertainty. He said Bitcoin remains in a bear phase until it decisively holds $100,000–$105,000, citing risks from AI spending, monetary policy, and U.S. midterms, but remains long-term bullish as institutional adoption positions BTC as a hedge against currency debasement.