On the daily timeframe, Bitcoin is trading below its short- and medium-term exponential moving averages while consolidating above demand in the $87,000 region. Momentum tools such as MACD and RSI show fading downside pressure, but multiple resistance zones between the upper $87,000s and mid-$92,000s continue to cap upside attempts. Traders are focusing on whether price can reclaim key averages or close below support to confirm the next directional move.

Capriole founder Charles Edwards warned that Bitcoin's price could sink to below $50,000 if the network has not implemented quantum-resistant safeguards by 2028. He argued that quantum computers may threaten Bitcoin earlier than many expect and called for a protocol fix to be rolled out in 2026 to avoid what he described as a severe bear market. Other Bitcoin proponents have suggested interim security practices, while some bulls continue to play down quantum-related risks.

Anthony Pompliano said on a recent podcast that it will be very difficult for any public company to match Michael Saylor's Strategy Bitcoin position of 671,268 BTC, currently worth about $58.61 billion. He noted that although firms could tap capital markets, the scale and early timing of Strategy's roughly $500 million purchase in 2020 give it a major lead, and the company has signaled it does not intend to sell its Bitcoin until at least 2065.

Lightning Network capacity climbed to new highs as major exchanges funded channels, with 5,606 BTC on Monday and 5,637 BTC (about $490 million) on Tuesday. Lightning Labs updated Taproot Assets to v0.7, adding reusable addresses, an auditable supply, and larger transactions, while Tether led an $8 million round to enable stablecoin payments on LN.

Bitcoin extended its decline and is consolidating below $88,000 and the 100 hourly Simple moving average. According to Kraken's BTC/USD feed, resistance sits at $88,500 and $89,350, while sellers were active near $89,000. Immediate supports are $87,000 and $86,500, with deeper levels at $85,500 and $85,000 if $88,500 fails.

Bitcoin has traded between $85,000 and $93,000 for over a month, repeatedly failing to reclaim resistance at $94,000 while hovering just above $87,860. Market analyst NoLimit recently suggested on X that BTC could form a cycle low near $40,000 in 2026, implying a drawdown of about 54% from current levels. He bases this view on Bitcoin's recurring four-year cycles, past peak-to-trough declines of 77%–85%, and technical areas around $40,000 that he believes could set the stage for the next major rally.

On December 16, 2025, MicroStrategy's Michael Saylor said on X that quantum computing would harden Bitcoin via upgrades that migrate active coins while leaving lost coins immobile. Technical analysis highlights consolidation beneath the $108,000–$110,000 zone, with RSI holding above 50. A decisive monthly close over $108,000 is seen as key for the 2026 advance.

Bitcoin held above $85,000 after a recent sell-off, while spot Bitcoin ETFs recorded $358 million in net outflows and the price sits 31% under the $126,219 all-time high. Despite the breach of the $90,000 level and short-term ETF weakness, correlation and volatility metrics, along with institutional positioning via ETFs and corporate reserves, suggest large investors have not definitively abandoned expectations for a move toward $100,000.