Year-End Pressure Mounts On Bitcoin As Cycle Faces Test

Source: CoinTribune Original Title: Year-End Pressure Mounts On Bitcoin As Cycle Faces Test Original Link: https://www.cointribune.com/en/year-end-pressure-mounts-on-bitcoin-as-cycle-faces-test/

Bitcoin’s Historic Turning Point

Bitcoin is playing big at the end of this year. For the first time since its creation, the flagship crypto could close a post-halving year in the red. An unprecedented scenario that would call into question one of the historic pillars of crypto analysis: the famous 4-year cycle theory. While BTC stagnates below $88,000, investors and analysts hold their breath. A bearish close would mark a symbolic and potentially structural turning point for the entire market.

Key Points

• Bitcoin is set to close 2025 in the red, a historic first after a halving.
• This situation calls into question the four-year cycle theory, a pillar of many investment strategies.
• Analysts warn about the importance of the $93,500 threshold, a critical level to avoid a bearish close.
• Other experts nevertheless identify positive signs, such as a bullish divergence on the 3-day RSI.

Annual Close Under Pressure: The Threat of a Historic Bearish Signal

As the year-end approaches, bitcoin seems unable to close 2025 on a positive note, a clear break with the usual post-halving year pattern.

Several concrete elements support this worrying observation:

• An unprecedented negative performance: As of December 27, bitcoin shows a performance of -6.1% since the beginning of the year. If this trend continues, this year would become the first post-halving year to close in the red.

• A critical technical threshold: Bitcoin is currently trading below $88,000, far from the annual opening price set at $93,500. This level is seen as a symbolic and technical pivot. Trader Keith Alan (Material Indicators) insists: “it’s the closes that matter the most”, emphasizing that temporary breaches of certain levels only have value if the close confirms the move.

• Tensions around the four-year cycle model: This potential reversal would call into question the famous 4-year cycle theory. Analyst Ajay Kashyap alerts: “if BTC closes in red, it would be a first in 14 years for a third year of bull market… It would signal a structural change and break the 4-year cycle thesis”.

• Volatility compressed by market factors: Despite a rebound attempt the previous weekend, bitcoin remained stifled by a tense technical context. In particular, the expiration of a record $24 billion volume of options on December 27 acted as a compressive force on the BTC price, preventing any real bullish move.

All these factors converge to a clear observation: the risk of a bearish annual close is real, and with it, that of a historic turning point in how the market structures its bullish and bearish cycles.

Technical and Seasonal Signals Arguing for a Rebound in 2026

Beyond the pressure exerted by the possibility of a bearish annual close, some analysts highlight technical and behavioral elements that could, on the contrary, announce a trend reversal of bitcoin as early as January.

Trader Jelle identified a particular configuration on the three-day charts: “bitcoin locked in a bullish divergence on three days, just above a key support”. He recalled that the two previous market lows had been preceded by similar signals. This type of divergence on the RSI indicator could indicate that sellers are losing strength, potentially opening the way to a gradual recovery.

Added to these purely technical signals are behavioral elements. Trader BitBull notably mentions a recurring dynamic linked to institutional seasonality: “those who sold at a loss for tax reasons will buy back BTC. Investors will reallocate funds towards underperforming assets in January 2026, as they always do”.

This portfolio rebalancing strategy could, according to him, “trigger an exit from the current trend and a move towards $100,000”. A scenario that, if realized, would lend credibility to the prospect of an extended bull cycle.

While the year-end uncertainties weigh on the market, some see it as a simple pause in a larger cycle. It remains to be seen whether 2026 will confirm this vision or mark a more lasting inflection of the post-halving dynamic.